Nominal GDP Growth Up, Yuan Down

Bloomberg: Forget Real GDP, Nominal Expansion Is Key for China
While China’s real growth has edged down 0.2 percentage point since the third quarter of last year, nominal expansion has accelerated 1.3 percentage points, explaining why policy makers are holding back from a big stimulus push, said Harrison Hu, chief Greater China economist at Royal Bank of Scotland Plc in Singapore.

"Nominal growth does a better job than real growth in capturing cyclical swings," he said in a telephone interview. "Real growth is more likely to be smoothed."
If they push harder, the yuan nosedives. The yuan will fall anyway, but they want to slow or delay the decline as long as possible.

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