{"id":17017,"date":"2016-01-27T19:20:06","date_gmt":"2016-01-28T00:20:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17017"},"modified":"2016-01-27T19:20:06","modified_gmt":"2016-01-28T00:20:06","slug":"is-china-about-to-drop-a-devaluation-bomb","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17017","title":{"rendered":"Is China About To Drop A Devaluation Bomb?"},"content":{"rendered":"
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Is China About To Drop A Devaluation Bomb?<\/a><\/h3>\n<\/div>\n<\/header>\n

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Though she had no intention of being funny, we laughed out loud, as undoubtedly many did with us, when incumbent and wannabe IMF head Christine Lagarde said last week in Davos that\u00a0China has a communication issue<\/a>. Of course, Lagarde knows full well that Beijing has much bigger problems than communication \u2018with the market\u2019. Or, to put it differently, if Xi and Li et al would \u2018improve\u2019 their communication by telling the truth about their economy, nobody would be talking about communication anymore.<\/p>\n

Mixed signals from China, which is attempting to shift its economy away from exports and investment to a consumer-driven model, have deepened concerns about the outlook for world growth, she said. Uncertainty is \u201csomething that markets do not like\u201d, Ms Lagarde told a panel of business leaders and economic regulators in the snow-blanketed Swiss ski resort. Investors have struggled with \u201cnot knowing exactly what the policy is, not knowing exactly against what the renminbi is going to be valued\u201d, she said, referring to China\u2019s currency. \u201cI think better and more communication will certainly serve that transition better.\u201d<\/i><\/p>\n

The world\u2019s second-largest economy this week announced its 2015 GDP growth as 6.9%, its slowest in a quarter of a century. The figure cast a shadow over the summit, where IHS chief economist Nariman Behravesh told AFP that Chinese policymakers had \u201cfumbled\u201d and had \u201cadded to the uncertainty and the volatility by their behaviour\u201d. Mr Fang Xinghai, the vice-chairman of China\u2019s securities regulator, said at the same panel that \u201cin terms of communication, we should do a better job\u201d. \u201cWe have to be patient because our system is not structured in a way that is able to communicate seamlessly with the market,\u201d he added.<\/i><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Is China About To Drop A Devaluation Bomb?   Though she had no intention of being funny, we laughed out loud, as undoubtedly many did with us, when incumbent and wannabe IMF head Christine Lagarde said last week in Davos that\u00a0China has a communication issue. Of course, Lagarde knows full well that Beijing has much […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,193,2590,353,418,434,6966,7738,6161,5177,10655,1031],"class_list":["post-17017","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-davos","tag-devaluation","tag-gdp","tag-imf","tag-international-monetary-fund","tag-lagarde","tag-raul-meijer","tag-soros","tag-the-automatic-earth","tag-xi","tag-yuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17017"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17017\/revisions"}],"predecessor-version":[{"id":17018,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17017\/revisions\/17018"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}