All articles on excess liquidity trap

China's Excess Liquidity Trap
In spite of the fact that average per capita income is still very low (about $2,500 in 2007), China has become a super well-funded country. Household deposits in the banking system are very high and increasingly liquid; large enterprises are on average very profitable and cash-rich; the government ran a budget surplus in 2007; the country is a net exporter of capital and has more foreign exchange reserves than it knows what do with.
August 19th,2008