Did You Miss That China Did Another Tightening Last Night?

Beijing

There was another hike in China last night.

Regulators in Beijing allowed for another 3% hike in gasoline prices.

That doesn’t sound like a tightening, but that’s fundamentally what it is. In a centrally planned economy, where the government sets the prices of key goods — gas, money, etc. — this is best understood as a tightening, because the government is obviously sucking a subsidy out of the economy and attempting to slow things down.

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