Economics
China Is Getting Less and Less Bang for Its Credit Buck
- Policy conundrum: Let growth slow or pump more liquidity
- Central bank is trying to avoid hose-pipe style stimulus
The Great Rebalancing: Inside China's Two-Speed Economy
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Behind the numbers showing China’s continued slowdown at the end of last year lies a warning for Communist Party leaders who have been equally determined to embrace economic change and to ensure a rapid pace of growth.
The flashing yellow light: there’s less and less power behind policy makers’ stimulus. For each $1 in credit expansion, China added the equivalent of 27 cents of gross domestic product last year, the least since 2009, according to data compiled by Bloomberg from government figures released Tuesday. As recently as 2011, each $1 generated 59 cents.