Personally I am glad that one powerful country takes the right steps in order to ensure long-term economic prosperity. Economic reports show that bank lending as well as aggregate financing in Chinese Yuan dropped much more than expectations and I applaud China for doing what is right and not doing what is popular.
Everyone seeks the easy way out and they never think about longer term negative impacts which end up costing more than if the right decisions would have been made. Japan and the US will be stuck devaluing their currencies and experiencing stagnant growth (as Japan has done for the better part of two decades).
China reduces liquidity in order to prevent bubbles and financial meltdowns and while there are plenty more issues China needs to resolve this one is by far one of the most mature decisions they have undertaken, at least in my opinion.
Everyone seeks the easy way out and they never think about longer term negative impacts which end up costing more than if the right decisions would have been made. Japan and the US will be stuck devaluing their currencies and experiencing stagnant growth (as Japan has done for the better part of two decades).
China reduces liquidity in order to prevent bubbles and financial meltdowns and while there are plenty more issues China needs to resolve this one is by far one of the most mature decisions they have undertaken, at least in my opinion.
