China subsidises consumer loans as deflation spectre looms
Latest stimulus plan aims to boost consumption while protecting banks’ profit margins
Related reading
China’s battle with deflation isn’t just a demand problem
Beijing’s policies have encouraged overproduction and excessive competition
Private credit firms pile into consumer debt as risk-taking mounts
Growth raises concerns about underwriting and risk management at fast-expanding groups
China’s ‘big five’ banks pressured by consumer woes
Slower economic growth and stagnant wages have knocked confidence and lending
The unsettling message for investors from the financial cycle
The next bailout is likely to involve inflationary financing of fiscal deficits by central banks
Interest rates are normal, the world is not
Given all this fragility, recessionary or inflationary shocks — or even both together — are conceivable
Beware populist economics
History suggests the political approach ends in unsustainable debt and lower GDP