![]() ![]() ![]() Yes, if, as in Japan in the past lost decades, most of those enterprises were pure private enterprises. So, according to the Japanese balance-sheet recession model, expansionary monetary policy in today's China won't be effective in proppng up the steam-losing economy, because most enterprises are now busy deleveraging, and so they won't choose to further borrow from the banks to end up further deteriorating their balance sheets. ![]() In analysing China's economy, many (especially non-Chinese) foreign China watchers seem to have been neglecting one almost-unique and long-lasting feature of China's domestic economy - this socialist country's peculiar dual-track public-versus-private enterprise and village-versus-urban-city bifurcating domestic economy. ![]()
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