Explore the contrasting economic landscapes of China and India as Beijing faces deflationary challenges while India experiences robust growth. Delve into the implications of these shifts on global markets, with insights into the Federal Reserve's inflation targets and the evolving role of U.S. economic statecraft. This episode provides a comprehensive analysis of how these economic dynamics could influence international trade and financial decisions worldwide.

Sources:

https://economictimes.indiatimes.com/news/international/business/beijings-deflation-dilemma-falling-prices-signal-bigger-troubles-ahead-for-chinas-economy/articleshow/118696889.cms

https://www.thedailystar.net/business/news/indias-economic-growth-picks-rising-govt-consumer-spending-3839011

https://www.cnbc.com/2025/03/03/inflation-will-move-toward-2percent-target-but-risks-to-outlook-are-rising-says-feds-musalem.html

https://news.virginia.edu/content/qa-us-role-international-economics-changing

Outline:

(00:00:00) Introduction

(00:00:46) Beijing's deflation dilemma: Falling prices signal bigger troubles ahead for China's economy

(00:03:29) India’s economic growth picks up on rising govt, consumer spending

(00:06:30) Inflation will move toward 2% target, but risks to outlook are rising, says Fed's Musalem

(00:09:35) Q&A: Is the U.S. Role in International Economics Changing?