In other words as I've stated, China exporting deflation onto the world due to US tariffs and lacklustre internal consumer demand. Countries are going to competitively devalue their currencies overcome tariffs. A "race to the bottom" in foreign exchange rates as central banks...
Robin Brooks
Robin Brooks21.7. klo 23.51
Macro 101 on China tariffs. If China doesn't transship goods to the US, it must export them to the rest of the world (ROW)). Supply of goods to ROW goes up. Since ROW demand is unchanged, prices must fall to generate demand. US tariffs are a deflationary shock for China and ROW.
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