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IPFS News Link • China

China's Economic Predicament: Why Pain Is Coming No Matter What

04-08-2014 • arclein

So, why have policymakers traded high growth for slower growth? What would happen if China abstained from any reforms? What if Beijing didn't try and curb lending, or shadow banking? More liquidity and would probably lead to continued inefficient allocation of resources. It's likely that the property market would swell, China's excess capacity would worsen, and money would generally go into projects that were basically intended to drive GDP.

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Reported By robert klein

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