Beijing Blunder

chinese bankLate last week, the Chinese central bank lowered interest rates for the sixth time in 12 months and reduced the required reserve ratio for the fourth time in a year to prop up its slowing economy. With substantial overcapacity and falling house prices, these actions will, at best, slightly boost investment. What the Chinese economy needs is more consumer spending and that would be best achieved via a tax cut.

Share This Post
Facebook Twitter Email

Speak Your Mind