Renminbi stack of bills dollar Zhang Chunlei/ZumaPress

Facing Down Secular Stagnation in China

Secular stagnation is looming worldwide, and China is no exception. Will the Chinese authorities’ latest move to address the economy's slowdown – devaluation of the renminbi – be enough to turn the tide?

HONG KONG – Secular stagnation is looming worldwide, and China is no exception. Globally, the unprecedented monetary and fiscal stimulus following the 2008 financial crisis has caused debt, equity, and property prices to peak, even as trade and investment decline; all of this has depressed demand, economic growth, and inflation. For China, this is complicating official efforts to boost the role of market forces in shaping economic outcomes. Will the authorities’ latest move – devaluation of the renminbi – be enough to turn the tide?

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