Why China’s Deflation Might Be Riskier Than High Inflation | WSJ

China’s economy is teetering on the brink of widespread deflation—a scenario that could cause even more problems than high inflation. Economists are afraid that deflation is happening in China like it did in Japan’s recession in the 1990s.

Like Japan in the ’90s, Beijing is also experiencing a real estate crisis. So how could this affect the U.S. and the rest of the world?

WSJ looks at Japan’s “lost decade” to explain why China’s economy is struggling and what it means for the global economy.

0:00 China’s economy
0:31 Japan’s “lost decade”
2:30 Deflation in China
3:56 Impact on the U.S. and the world
4:36 China’s response to deflation

#China #Economy #WSJ



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