As China Falls into Deflation, the Mood Turns Dark
https://www.nytimes.com/2023/08/21/business/china-deflation.html
Consumers and business owners say they feel paralyzed by despair, and their reluctance to spend and borrow is feeding what could become a dangerous cycle.
https://www.nytimes.com/2023/08/21/business/china-deflation.html
Consumers and business owners say they feel paralyzed by despair, and their reluctance to spend and borrow is feeding what could become a dangerous cycle.
China’s Stalling Economy Puts the World on Notice
https://www.nytimes.com/2023/08/11/business/china-economy-trade-deflation.html
As China’s economy flashes indications of decline, the consequences pose perils for countries around the globe.
https://www.nytimes.com/2023/08/11/business/china-economy-trade-deflation.html
As China’s economy flashes indications of decline, the consequences pose perils for countries around the globe.
How U.S. and China Are Breaking Up, in Charts
China Slips into Deflation in Warning Sign for World Economy
https://www.wsj.com/articles/china-slips-into-deflation-in-warning-sign-for-world-economy-bbefb179
https://www.wsj.com/articles/china-slips-into-deflation-in-warning-sign-for-world-economy-bbefb179
Behind the ticking time bomb – should we fear
China’s slide into deflation?
https://www.theguardian.com/world/2023/aug/12/china-deflation-ticking-time-bomb
China’s recent economic woes suggest there is
something seriously amiss
https://www.theguardian.com/business/2023/aug/11/china-economic-problems-show-things-are-seriously-amiss
https://www.theguardian.com/world/2023/aug/12/china-deflation-ticking-time-bomb
https://www.theguardian.com/business/2023/aug/11/china-economic-problems-show-things-are-seriously-amiss
Chinese Exports Fall at Steepest Pace Since February 2020
https://www.wsj.com/articles/chinese-exports-fall-at-steepest-pace-since-february-2020-e930246b
https://www.wsj.com/articles/chinese-exports-fall-at-steepest-pace-since-february-2020-e930246b
Sputtering Trade Fuels Fears for a Connected World
https://www.wsj.com/articles/sputtering-trade-fuels-fears-for-a-connected-world-81c99922
https://www.wsj.com/articles/sputtering-trade-fuels-fears-for-a-connected-world-81c99922
Related:
GDP Comparisons Using PPP Exchange Rates versus Market
Exchange Rates
Paul Krugman notes:
https://www.nytimes.com/2023/08/11/opinion/china-us-economy.html
The simplest way to measure the relative sizes of the U.S. and Chinese economies is to take each country’s gross domestic product, which is measured in national currency, and convert them to a common currency at market exchange rates — which usually involves converting yuan to dollars, although it wouldn’t make a difference if you did it the other way around. When you do that, China comes in second, with a 2022 G.D.P. of $18.1 trillion compared with America’s $25.5 trillion.
But that comparison doesn’t adjust for prices in the two countries. If you adjust for differences in the cost of living — the bars labeled PPP, for “purchasing power parity” — China is already well ahead.
Why might we want to adjust for prices? One answer is that when you’re looking at changes over time, dollar comparisons of national G.D.P.s can be greatly affected by movements in foreign exchange rates, which can be highly volatile.
Paul Krugman notes:
https://www.nytimes.com/2023/08/11/opinion/china-us-economy.html
The simplest way to measure the relative sizes of the U.S. and Chinese economies is to take each country’s gross domestic product, which is measured in national currency, and convert them to a common currency at market exchange rates — which usually involves converting yuan to dollars, although it wouldn’t make a difference if you did it the other way around. When you do that, China comes in second, with a 2022 G.D.P. of $18.1 trillion compared with America’s $25.5 trillion.
But that comparison doesn’t adjust for prices in the two countries. If you adjust for differences in the cost of living — the bars labeled PPP, for “purchasing power parity” — China is already well ahead.
Why might we want to adjust for prices? One answer is that when you’re looking at changes over time, dollar comparisons of national G.D.P.s can be greatly affected by movements in foreign exchange rates, which can be highly volatile.