China Announces Its Own Economic Stimulus Package
FX market reacts to China’s planChina, which is expected to become the world’s next economic superpower, has just announced its own economic stimulus package. The Chinese government has announced that over the next two years, it will inject $586 billion into its own economy.
This is the largest stimulus package to date (the $700 billion bailout, apparently, doesn’t count as "stimulus"; it is seen as "rescue"), dwarfing packages put forth be the U.S., Japan and Germany. The Chinese package dwarfs all them combined. alue2!>
Of course, with so much money designed to prop up Chinese economic growth, it is probably inevitable that the U.S. will pass another stimulus package.
Right now, the FX market is responding to the Chinese announcement, with the dollar and yen dropping as the down under currencies and the sterling rise.
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