China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>Despite the small year to date decline of the RMB and the relative uncaring attitude of the market, there are reasons so suspect the underlying trends do not favor longer term stability.  Capital outflows, based upon a variety of metrics, continue to outpace last year on a gross basis and net outflows have surpassed all of 2015.  These are not metrics that promote the idea that the value of the RMB remain long term stable. </p><p>For instance, a major source of capital outflows has been fraudulent…</p>

Despite the small year to date decline of the RMB and the relative uncaring attitude of the market, there are reasons so suspect the underlying trends do not favor longer term stability.  Capital outflows, based upon a variety of metrics, continue to outpace last year on a gross basis and net outflows have surpassed all of 2015.  These are not metrics that promote the idea that the value of the RMB remain long term stable. For instance, a major source of capital outflows has been fraudulent…

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