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The Effect of Rates on Capital Flows in China
Is it the Federal Reserve having a higher terminal rate than everyone else or is this more about other economies, other central banks not looking as hot? So we're discussing how much above 5% interest rates should go in the US, right? That's the debate we're having every day. And then in China, right, now the debate is whether they have to lower interest rates below 2%, right? We're going low every day, right? so it used to be the case of interest rates were much, much higher in China than in the United States,. And now it's totally flipped, right?
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