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RE: China's Population Crisis / 中国的人口问题

in #cn8 years ago

Well, Japan is going through somethingh similar - only they are about a decade ahead of China in the population reduction experiment.

Absolute population in Japan started to fall in 2010. One side effect of a smaller population is that unemployment there is very low - about 3.7%. However, debt is huge because they are borrowing to fund their oldies. They are trying to get round it by monetising the debt - the Bank of Japan is doing QE and then buying govt bonds. Once the BoJ owns all the debt, they can eventually cancel it.

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Great breakdown of Japans solution, aenor. They have been implementing QE for a while now. Given the size increase of population in China as opposed to Japan, the costs of required borrowing would be many times higher therefore would it be even possible to start a workable plan similar to that for China?

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