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Thursday, March 16, 2017

China raises money market rates after FED move.

http://www.scmp.com/business/banking-finance/article/2079352/china-raises-money-market-rates-second-time-year-pumps-new

What does this mean in the real economic term?

This action means China is draining cheap money out of the monetary system and replacing it with more expensive money.

This will help to curtail excessive spending and investment but also increase inflation.

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