First published: ft.com, 24/12/2014
Monetary policy might not be enough and governments may be forced to step in
A persistent and as yet unfinished slowdown in the country’s economic growth has been accompanied by the emergence of substantial overcapacity, a significant rise in non-financial corporate debt and a big drop in inflation. Between 2011 and November 2014, Chinese producer prices fell by 10 per cent — the annual change has been negative for 33 months — and the annual rate of consumer price inflation has fallen from 6 per cent to 1.4 per cent over the same period….“more:”
