중국경제는 유동성위기가 지속될듯

"Falling into Liquidity Trap" China Hustling

중국경제는 유동성위기가 지속될듯

The Chinese government is said to issue "special government bonds" worth 兆 in May this year.
Unlike other countries, in China, the issuance of "special government bonds" in the past 40 years of reform and opening has the special characteristic of being issued only in very special circumstances

The first "special government bonds" were issued in 1998 at the height of the Asian financial crisis, after which special government bonds were issued in 2022 due to the 2008 U.S. financial crisis and the coronavirus

Recently, China's economy has been suffering from economic difficulties both inside and outside due to U.S. economic sanctions since the 2021 real estate recession, and the so-called "轉" phenomenon is widespread in which no matter how much money is printed and released to stimulate the economy, it is not connected to consumption and investment and no money is circulated

Even though more money (above 300 兆) has been released to China than the combined 貨量 of the U.S. and Europe in recent years, China's economic downturn is accelerating due to the "轉" phenomenon, in which no money is circulating in the real economy

This is the liquidity trap in economics textbooks
The Chinese government's issuance of "special government bonds" is an acknowledgment of the fact that China is in a liquidity trap

To get out of the liquidity trap properly, perhaps China will have to "inflation" its economic constitution going forward. In other words, China is bracing for long-term inflation instead of the pain of an immediate recession