Hidden Losses and Little Reform; China May Be Slowing More Than You Think

``I suspect [the PBOC's lesser emphasis on inflation] means that policymakers are becoming a little more concerned with slowing growth and a little less concerned about domestic overheating.　 As I argued in the past few newsletters, growth may be slowing more quickly than Beijing would like, and combined with the very volatile external environment, I suspect they are going to be cautious about too much more tightening.''