{"id":639486,"date":"2013-01-18T17:08:00","date_gmt":"2013-01-18T22:08:00","guid":{"rendered":"http:\/\/serkadis.com\/index\/?guid=7c68935a1dfb1fc8fb714797e7cbf805"},"modified":"2013-01-18T17:08:00","modified_gmt":"2013-01-18T22:08:00","slug":"china-money-matters","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/639486","title":{"rendered":"China: Money Matters"},"content":{"rendered":"

Steve H. Hanke<\/p>\n

Contrary to what the doomsters have been telling us, China\u2019s economy is not on the verge of collapse. As the Wall Street Journal<\/em>\u2019s man in Beijing (and my former student), Aaron Back, reported: \u201cChina\u2019s economic growth accelerated in the fourth quarter of 2012<\/a>.\u201d Indeed, China\u2019s fourth quarter GDP growth rate came in at a strong 7.9%.<\/p>\n

What the doomsters and many other Pekingolgists fail to grasp is that money matters. Indeed, it dominates fiscal policy<\/a>, and nominal GDP growth is closely linked to growth in the money supply \u2013 broadly measured<\/a>.<\/p>\n

China\u2019s most recent acceleration in GDP growth did not catch me flatfooted, because China\u2019s money supply has been surging (see the accompanying chart).<\/p>\n

<\/p>\n

In fact, China\u2019s M2 money supply measure is 9.7% above the trend level. Money matters.<\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Steve H. Hanke Contrary to what the doomsters have been telling us, China\u2019s economy is not on the verge of collapse. As the Wall Street Journal\u2019s man in Beijing (and my former student), Aaron Back, reported: \u201cChina\u2019s economic growth accelerated in the fourth quarter of 2012.\u201d Indeed, China\u2019s fourth quarter GDP growth rate came in […]<\/p>\n","protected":false},"author":7314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-639486","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/639486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/7314"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=639486"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/639486\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=639486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=639486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=639486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}