A “Follow-the-leader” Monetary Policy Game

Lars has a good short post on China:

Yesterday we got the the Q3 numbers and as the graph shows the sharp slowdown in Chinese NGDP, which started in early 2013 continues. A similar trend by the way is visible in Chinese money supply data.

This is of course very clearly shows just how much Chinese monetary conditions have tightened over the past 2 years and this is of course also the main reason for the sell-off global commodity prices and in the Emerging Markets in the same period.

I suppose it has nothing to do with Janet & Friends “wrongful” monetary policy. Maybe I´m wrong.

Follow the leader

2 thoughts on “A “Follow-the-leader” Monetary Policy Game

  1. Just to be clear, the official Market Monetarist position is that it’s dishonest for central banks to blame other central banks for weak domestic demand, correct?

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