One Chinese economist believes Joseph Schumpeter holds the key to understanding recent movements in interest rates.
"Consequently, the most important variable that supports the level of loan interest rates is returns on capital.”?
In capitalist regimes, usually. In China, never. While ROI is important, the Five Year Plan trumps it every time.
Why does the PBOC need to be profitable if it is state owned?
"Consequently, the most important variable that supports the level of loan interest rates is returns on capital.”?
In capitalist regimes, usually. In China, never. While ROI is important, the Five Year Plan trumps it every time.
Why does the PBOC need to be profitable if it is state owned?