Based On This Measure, China May Be Caught in a Liquidity Trap
Look at broad money growth, not narrow.
Chinese one-hundred yuan banknotes are stacked for a photograph at the Korea Exchange Bank headquarters in Seoul, South Korea, on Thursday, Feb. 27, 2014.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
Markets might get concerned about China again.
Supportive credit conditions and growth that's beat economists' expectations have buoyed investors and turned January's concerns into a distant memory, in part thanks to a commitment to unleash credit even at the cost of adding to the country's debt load.