August 22, 2015

Here are all the ways that China can blow up the world's economy

If you took an extended break from early June to now you might be wondering how Greece and China switched places.

Back then everyone was worried that Greece would be forced out of the euro, breaking up the largest economic area in the world. There were concerns about China's slowing growth but little action in the markets to suggest a meltdown.

Then China's stock market imploded, commodities were routed and the country rushed out state support measures to keep everything going and devalued its currency. Meanwhile, the Greek crisis quietened down after a third bailout was agreed.

China became the big threat to global economic stability. There's a lot of fallout but it can all be grouped into three main channels - politics, markets and monetary policy - to transmit doom around the world.

Read more at http://www.businessinsider.in/Here-are-all-the-ways-that-China-can-blow-up-the-worlds-economy/articleshow/48588164.cms

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