Federal Character
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
Federal Character
No Result
View All Result
Home Business & Finance

Why China Won’t Print Its Way Out Of Inflation

Nnaemeka OkwarabyNnaemeka Okwara
May 31, 2024
in Business & Finance
0
Why China Won’t Print Its Way Out Of Inflation
Share on FacebookShare on TwitterShare on Whatsapp

China has opted not to print large amounts of money to solve its economic problems, despite facing a massive housing crisis. Instead, the government has proposed a 300 billion Yuan bank loan to rescue the sector, a relatively small amount compared to the outstanding debt. This decision has raised eyebrows, as most countries in similar situations would resort to central bank intervention and money printing to inject liquidity.

According to Law Ka-Chung, an expert in economics, China’s inaction may be attributed to several factors. One reason is the ongoing infighting among the country’s billionaires, who pose a threat to the existing regime. By creating a housing crisis, the wealth of these billionaires would be significantly reduced, mitigating the threat. Another reason is the desire to avoid a prolonged crisis, as policy inaction could lead to a sharper economic downturn, potentially ending the crisis sooner.

However, the most significant reason for China’s reluctance to print money is the fear of hyperinflation and currency collapse. The country has experienced the devastating consequences of excess money creation in the 1940s, leading to a currency collapse and political regime change. The current ruling regime is aware of this history and prefers to avoid repeating it.

While other countries, such as the US and Japan, have implemented money printing policies without experiencing severe consequences, China’s economy is unique, and the risks are higher. In 2009, China experimented with rapid money creation, resulting in inflation and currency depreciation. Recently, the country has faced deflation and currency depreciation due to debt crises and monetary expansion.

To avoid these risks, China has chosen a more cautious approach, opting for a gradual and controlled economic adjustment. While this may lead to a slower economic recovery, it reduces the likelihood of a currency collapse and political instability

Tags: chinafederal characterFinanceinflationmoneyNewsPrintingWhy China Won't Print Its Way Out Of Inflation
Nnaemeka Okwara

Nnaemeka Okwara

Okwara Nnaemeka Emmanuel is a skilled wordsmith, passionate blogger, and content writer with a degree in Media Content, He has made a significant mark in the industry. He also holds certification in Marketing and advertising. He has honed a unique blend of creativity and strategic thinking.Driven by a belief in the power of creativity, He has established a niche for himself in diverse regions, leaving a trail of successful projects and satisfied clients. His ability to craft compelling narratives and engage audiences sets him apart in the competitive world of content creation.As a dedicated professional, He continues to push boundaries and set new landmarks in their field. Whether it's through captivating blog posts, persuasive copywriting, or innovative content strategies, Nnaemeka’s consistently delivers excellence, leaving a long lasting impact

Related Posts

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose
Business & Finance

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October 23, 2025
October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose
Business & Finance

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October 22, 2025
October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose
Business & Finance

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October 20, 2025
Next Post
Nigeria Seeks World Bank Extension for $376 Million North-East Recovery Project

Nigeria Seeks World Bank Extension for $376 Million North-East Recovery Project

Nigerian Lawmakers Seek To Curb Central Bank’s Powers Amid Soaring Inflation

Nigerian Lawmakers Seek To Curb Central Bank’s Powers Amid Soaring Inflation

Kimberly-Clark, huggies producers announces decision to Withdraw from Nigeria

Kimberly-Clark, huggies producers announces decision to Withdraw from Nigeria

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

The NFT Revolution: A Game-Changer for Brands and Consumers Alike

The NFT Revolution: A Game-Changer for Brands and Consumers Alike

1 year ago
Nigeria’s Democracy on Life Support: The Crushing Weight of Expensive Governance

Nigeria’s Democracy on Life Support: The Crushing Weight of Expensive Governance

1 year ago
Nigerian Railway Expands Abuja-Kaduna Train Services

Nigerian Railway Expands Abuja-Kaduna Train Services

11 months ago
Nigerian Naira Posts Weekly Gain of N40.49 in Official Foreign Exchange Market

Dollar, Euro and Pounds To Naira Exchange Rate For Today, October 23 2024

1 year ago

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

Topics

2023 Aboki/Bureau De Change (BDC) apc Arsenal buhari Business cbn chelsea china court Davido Dollar Efcc Election Entertainment Euro and Pounds To Naira Exchange Rate For Today exchange rates for the Nigerian Naira (NGN) Fashion federal character federal government Finance food Football Foreign News government health inec Israel lagos Manchester United Naira Naira Black Market exchange rates News Nigeria pdp police Politics president protest Russia Sports tinubu trump ukraine US
No Result
View All Result

Highlights

Chloe Bailey Breaks Silence on Romance With Burna Boy — Here’s What We Know

Wembanyama Drops 40 in Stunning Return as Spurs Crush Mavericks in Season Opener

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

Osimhen Scores Twice as Galatasaray Win 3-1 Away Against Bodo/Glimt in Champions League

The Internet Declared Kendall Jenner’s ‘King Kylie’ Outfit a ‘Fail.’ Here’s Why They’re Right

Nigeria Bans Sex with Minors but Ignores Muslim Marriages to Minors

Trending

Movie Review: Why Same Place, Same Time Is Undermined by Weak Plot and Technical Flaws — 4/10
Entertainment

Movie Review: Why Same Place, Same Time Is Undermined by Weak Plot and Technical Flaws — 4/10

byAyobami Owolabi
October 23, 2025
0

Bolaji Ogunmola’s latest film, Same Place, Same Time, promises a story about love, friendship, and timing but...

Ghana in Mourning as Former First Lady Nana Konadu Agyeman-Rawlings Dies at 76

Ghana in Mourning as Former First Lady Nana Konadu Agyeman-Rawlings Dies at 76

October 23, 2025
Miami Heat’s Terry Rozier Arrested in FBI Sports Betting Investigation

Miami Heat’s Terry Rozier Arrested in FBI Sports Betting Investigation

October 23, 2025
Chloe Bailey Breaks Silence on Romance With Burna Boy — Here’s What We Know

Chloe Bailey Breaks Silence on Romance With Burna Boy — Here’s What We Know

October 23, 2025
Wembanyama Drops 40 in Stunning Return as Spurs Crush Mavericks in Season Opener

Wembanyama Drops 40 in Stunning Return as Spurs Crush Mavericks in Season Opener

October 23, 2025

We launched Federal Character in February 2021 based on the belief that the world is in need of smarter and more efficient reporting of events shaping our rapidly changing world. We pledged to put our audience first, always.

Recent News

  • Movie Review: Why Same Place, Same Time Is Undermined by Weak Plot and Technical Flaws — 4/10
  • Ghana in Mourning as Former First Lady Nana Konadu Agyeman-Rawlings Dies at 76
  • Miami Heat’s Terry Rozier Arrested in FBI Sports Betting Investigation

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

© 2024 FederalCharacter.com

No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion

© 2024 Federalcharacter.com