Major: People Underestimate China Policy Flexibility

The video discusses China's economic flexibility and the common mistake of viewing it through a Western lens. It highlights the challenges in understanding China's economic shocks and the role of fiscal stimulus. The discussion shifts to inflation, noting that recent inflationary moves are commodity-based and not driven by central banks. The video explains that quantitative easing has been disinflationary and that genuine inflation requires printing money, not just asset swaps. The need for easier fiscal policy to complement monetary policy is emphasized.

Why do people often misunderstand China's economic policies?

What does the speaker suggest about the future of inflation and central banks?