ECB article warns of possible effects of a Chinese slowdown
Looser Chinese monetary policy in response to problems could have significant effect
A slowdown in the Chinese economy could “significantly” affect the eurozone, depending on the actions of policymakers, an article in the European Central Bank’s latest economic bulletin says.
But central banks and other policymakers could act to make sure that a reduction in China’s GDP growth had only “limited” impact, the article argues. The authors employ a number of commonly used models of the global economy to simulate the effects of a possible Chinese slowdown.
Over the last decade
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