ECON 162 Lecture Notes - Lecture 13: Deflation, Money Supply, Business Cycle
26 Dec 2018
School
Department
Course
Professor
Document Summary
Today"s problems: credit explosion, property, slowing growth. Cycles are actually the main concern: the trade pothole . Direct control over the growth of bank credit. State enterprises" weak responses to interest rates. The link between money growth and inflation is not as tight as in other countries. Directly reduce the number of investment projects by admin methods. Do not dictate investment or bank credit. Y = c + i + g + (x-m) Shadow lending: concentrated in the relatively distressed northeast. China is now establishing a too big to fail standard. Non-banks: citic investment fund, ping an insurance. This designation will create a new set of regulatory standards. Costs and benefits of fixed exchange rate regime. A stabilizing force during asian financial crisis. If the exchange rate is consistently over values: currency crisis may occur. If the exchange rate is consistently under values: trade protection from other countries may contribute to trade rivalry/war.
