Black markets have always been a fixture in tightly regulated markets controlled by a central governing authority. I do not know the extent of black marketeering in China, but I would be surprised if it was not extensive.
However, what will upend the CCP's plan for the eCNY is the reality that the Chinese do not want to hold that currency…
Black markets have always been a fixture in tightly regulated markets controlled by a central governing authority. I do not know the extent of black marketeering in China, but I would be surprised if it was not extensive.
However, what will upend the CCP's plan for the eCNY is the reality that the Chinese do not want to hold that currency. Every consumer in China has an easy way to avoid holding eCNY--just spend it.
Even the economists at the Federal Reserve are savvy enough to understand that accelerating spending is going to push inflation up and not down. A nation of 1.3 billion people choosing to live paycheck to paycheck is not going to help China's economy climb out the doldrums.
Time for a little gushing, Mr. Kust. You are excellent with details and with the big picture, with your understanding of both human nature and economic theory, with savvy analysis and wise insight. I value every column you write, and consider the money I’ve spent as a paid subscriber to be a terrific bargain. Thank you, thank you for your hard work and brilliant analysis!
Black markets have always been a fixture in tightly regulated markets controlled by a central governing authority. I do not know the extent of black marketeering in China, but I would be surprised if it was not extensive.
However, what will upend the CCP's plan for the eCNY is the reality that the Chinese do not want to hold that currency. Every consumer in China has an easy way to avoid holding eCNY--just spend it.
Even the economists at the Federal Reserve are savvy enough to understand that accelerating spending is going to push inflation up and not down. A nation of 1.3 billion people choosing to live paycheck to paycheck is not going to help China's economy climb out the doldrums.
Time for a little gushing, Mr. Kust. You are excellent with details and with the big picture, with your understanding of both human nature and economic theory, with savvy analysis and wise insight. I value every column you write, and consider the money I’ve spent as a paid subscriber to be a terrific bargain. Thank you, thank you for your hard work and brilliant analysis!
Thank you for your kind words! They are truly very much appreciated!