The Effect of Interest Rates on Consumer Credit

In China it works a little bit differently in part because households tend to only have access to their domestic deposits. So what ends up happening is if you keep interest rates low but they have to save for something in the future because they don't have access to other kinds of sophisticated financial products right it means that their savings go up despite interest rates going down. The typical Chinese household feels poorer so he saves more he already consumes less which is the same thing so it works backwards there and that creates a lot of confusions I think yeah I agree MattYou know speaking of sort of political economy financial regulation I mean another issue one of people's minds is that the long time head of the People's Bank