Fan Li

 

Inflating China

Economics and Finance

A week is not a long time in Economics. Only a few weeks ago China‚Äôs President Hu Jintao was being feted as the most powerful man on the planet, in charge of the most vibrant economy. Here was the man to whom world leaders came to pay homage at the G20 summit. Since then however, China’s image has taken something of a beating.

The Uncertainty of Deflation

Economics and Finance

A self fulfilling prophesy? A deflationary spiral is when a decrease in price leads to lower production levels, which then triggers lower wages and diminished demand, which then leads to even more decreases in prices. So it is a spiral but also a vicious circle that feeds itself.