China must choose: growth or lasting economic health. It can’t have both

//China must choose: growth or lasting economic health. It can’t have both

China must choose: growth or lasting economic health. It can’t have both

It is an irony of the so-called free economies that their governments are more constrained than China’s when it comes to pursuing growth. China’s central bank can print as much money as the economy needs; its government can order state-owned banks to make available as much credit as it wants.Neither situation is possible in a market economy, where the central bank is independent and banks, most of which are privately owned, make decisions purely on commercial grounds.Herein lies the key to…

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By | 2019-02-24T03:01:40+00:00 February 24th, 2019|Headlines|Comments Off on China must choose: growth or lasting economic health. It can’t have both