The worlds largest exporter is in a deflationary death spiral. Unable to build entire ghost cities anymore they have no escape.
Deflation coming to the West in 1 year or so.
Deflation coming to the West in 1 year or so.
Trumps tariffs will just speed this up as demand in china drops even further and they dump goods on europe for firesale prices.
Eh, the deflation transmission channel for manufactured goods isn’t well established. If China had a floating currency and were a financial power, yes. But I’m sceptical cheaper consumer and intermediate goods will prompt deflation, particularly given the West is still battling inflation.