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China: When falling home prices are a good thing

Posted on 05 September 2011

Property prices in China’s major cities declined 0.41% in August as measures to curb rising inflation and an overheating economy begin to bear fruit, increasing chances that the world’s second largest economy will achieve a hotly debated soft-landing.
While Western economies try to stave off inflation by expanding central bank balance sheets and injecting more stimulus , China’s growth rate allows it to focus on controlling real estate prices, among other measures, to try to fight off inflation and overheating, indicating that at least in terms of macroeconomic problems, China has decoupled……………………………………….Full Article: Source


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