Seth Carpenter: The Global Implications of China’s Deflation

This podcast episode discusses the global implications of China's economic slowdown and its potential to export disinflation to the rest of the world. While China's domestic inflation has turned negative, it is not clear that this will translate into lower prices for US consumers. However, there is a clear disinflationary force from China to the rest of the world, which may be welcome news for central banks that are trying to tame inflation. Nevertheless, if China's slowdown is more severe than expected, it could raise concerns about a global economic slump.