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China must reexamine housing to continue sustainable growth

Posted on 16 March 2012

China’s negative real deposit rates for households have led to an overweight investment in residential housing that must be reexamined if the country is to sustain economic growth, an economist said Wednesday.
Nicholas Lardy, a senior fellow at the Washington-based think tank Peterson Institute for International Economics, said that China’s negative real deposit rates — as nominal interest rates are below inflation — since 2004 have made investments in banks unattractive for households………………………………………..Full Article: Source


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