- China and US implement inverse monetary policy post 08 crisis Tightening first and the other loosening first
- Interest rate adjustments are more drastically (based on standard deviation) compared
The implications of “infinite money printing” can no longer be just hypothesised but seen and felt, by you and me. So how foresighted are our governments in charge??
This short write up is not going to re-emphasis nor hypothesise the implications of MMT but to show you statistically, where US really is in comparison to China.
Where are we (US VS China)?
~Interest rate~
Data World Bank
Real interest rate = Nominal interest rate – inflation.
This gives the net revenue the countries earn on loans. If it is negative, the borrowers will benefit from it.
As real interest rate can be affected either by nominal interest rate or inflation, to know which factors is causing the increase/decline will help us accurately plot each countries economical position.
Points of significance: