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In RealTime posts, PIIE senior staff and colleagues discuss the fast-moving economic news, financial developments, and public policy choices confronting the United States and the world.
I recently left a comment on Paul Krugman’s blog post on financial repression in China. Krugman wrote: I have no idea whether this John Hempton piece on China is at all right, but it’s a terrific read, and provides food for thought. Hempton basically argues that China has turned financial repression—controlled interest rates on deposits, [...]
After years of piling up huge foreign exchange reserves, China is increasingly seen by many analysts as entering a new phase. These analysts, who have been examining new data on China’s official holdings of foreign exchange reserves, have concluded that China is now experiencing substantial capital outflows and that Chinese reserve growth has essentially stopped. [...]