Bubbles Of The Red Ponzi---An Austrian Diagnosis

Even as expansionary monetary policy boosted the GDP of China post-recession, this expansion is barely seen in the production of basic consumer goods. It represents a speculative bubble in fixed asset investments (FAI), especially on real estate. From an Austrian-school perspective, this bubble is a consequence of a change in the structure of production of the economy of China stimulated by their expansionary monetary policy.













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