China’s Economy: Bank Lending Restrictions to Slow Growth?
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Submitted by Businomics Blog
China’s regulators are asking banks not to grow their loan outstandings between October 31 and December 31. This is a ham-handed way to slow the pace of economic growth and tame inflation, which is running 6.5 percent in China’s official statistics. That 6.5 percent is an average; foodstuffs are rising by 17 percent, which has to make everyday Chinese people feel like they are experiencing runaway inflation.
