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Western inflation puts China in monetary stalemate

Monetary easing isn’t the appropriate tool for China’s slowing GDP growth and imported inflation risks

by David P. Goldman November 12, 2021November 15, 2021

China has taken a more conservative approach to monetary policy in the pandemic era than the US, Japan and Europe. Image: Facebook

With producer price inflation at its highest level since the mid-1990s, China can’t ease monetary policy. Commodity price inflation is driving China’s PPI, and consumer prices will have to follow—unless input prices fall.

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