China’s online platforms have been inundated with conversations about deflation for the past month. A financial expert pointed out that China is not a market economy, and applying Western economics to assess it is difficult.
Moreover, the expert said that “financial idling” is a problem that must be dealt with; otherwise, the economy will continue to worsen.
Deflation
On April 20, Zou Lan, director of the Monetary Policy Department of the Central Bank of China, declared at the central bank’s first-quarter press conference that there is no basis for long-term deflation or inflation in China.
Kathleen Li has contributed to The Epoch Times since 2009 and focuses on China-related topics. She is an engineer, chartered in civil and structural engineering in Australia.
