How did the PRC not cause inflation during the financial crisis of 2008-2009 when the government pumped 600 billion USD into the economy to build and develop infrastructure, housing and other projects rapidly?
In: 6
Extreme capital controls. They basically stopped anyone from exchanging Yuan for foreign currency in significant amounts.
These same capital controls are also why the Yuan will never be a reserve currency.
Presumably because their economy also grew at a similar rate. Money creation only creates inflation when it outstrips the demand for that new money.
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