Despite witnessing rising prices and slowing growth, any risk of China facing stagflation is remote, according to one HSBC analyst. HSBC Chief Economist Xiaoping Ma believes it would be helpful for China to look back on how developed economies endured a painful period of stagflation during the 1970s. Lessons from stagflation in the 1970s Ma points out that during the mid-to-late 1970s, most OECD countries, including the U.S., the U.K. and Australia, witnessed stagflation characterized by simultaneous co-existence of high unemployment, slow growth and rising inflation. In response to the stagflation, the three countries initiated different policy measures. However, in…
China Will Avoid Stagflation: HSBC
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports