Urgent.News

What's breaking now, across thousands of outlets.

More in Finance & Markets

Is this why China finds it so hard to inflate producer prices?

This paper investigates why China’s recurrent credit expansions have coincided with persistently weak inflation. We argue that this pattern reflects the country’s production-oriented monetary regime. At the aggregate level, faster monetary-financial expansion temporarily raises PPI inflation but depresses it over longer horizons.

More from Wednesday 5 August →