Thursday, March 10, 2016

From Ben Bernanke's Blog:  China’s transparency challenges 

Data transparency 
On August 11, 2015, China simultaneously announced changes to its exchange-rate regime and devalued its currency by 1.9 percent against the dollar, a surprise move which sparked market selloffs. Traders apparently inferred that the Chinese leadership knew more than they did about Chinese growth prospects and had devalued to offset weakening domestic demand with increased exports. On the surface, there was no need to guess about Chinese growth: Only a few weeks before, China had announced its second quarter figure was right on target at 7.0%. But to many, this announcement had seemed too good to be true, provoking a flurry of skepticism in the international press.
Are China’s growth numbers wrong?

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