Part 7/8:
In light of these challenges, the PBOC is continuing to ramp up money printing and borrowing to stave off immediate economic distress. Unfortunately, history suggests that such an approach only exacerbates existing problems rather than solving them.
Fiscal interventions designed to inject liquidity into the economy without addressing the root causes of instability will likely result in further disappointment in the long run. The cycle of monetary easing will lead to greater volatility in both domestic and international markets.