News Analysis
China has reportedly added trillions of yuan to the money supply in 2022, the most in its history and equivalent to the combined amount from the United States, Japan, and the European Union. However, the move may have no way to boost the Chinese economy, given a sluggish trend in GDP and a steep dive in the money circulation rate, expert suggests.
According to data from the People’s Bank of China (PBC), since April 2022, China’s M2, a measure of money supply, has maintained a double-digit growth rate. By the end of that year, M2 totaled 266.43 trillion yuan (about $38.78 trillion), an increase of 11.8 percent, or 28.14 trillion yuan ($4.096 trillion) from the previous year….