Xenon comments on Chinese economy expected to have slipped into deflation as recovery falters

Chinese economy expected to have slipped into deflation as recovery falters (www.theguardian.com)

submitted 3 years ago by RandAlThor@lemmy.ca to c/worldnews@lemmy.ml

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[–] Xenon@lemmy.world 2 points 3 years ago (1 child)

I don't know if deflation itself is that harmful or if it's just a symptom of economic troubles, i.e. lack of demand. In any case, if it persists, that's not a good outlook for the Chinese economy.

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[–] barsoap@lemm.ee 1 point 3 years ago

Both, it's a positive feedback loop, and in the end it doesn't really matter what started it once the economy crashes you've gone through multiple lack of demand -> prices fall -> even more lack of demand iterations.

"positive" as in engineering, not as in good

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