Does Economics Work Differently in China Than the Rest of the World?

Most economists argue that the Fed's quantitative easing policy, in which it bought up more than $3 trillion in government bonds and mortgage backed securities, is still helping to keep interest rates down even though the Fed has stopped buying these assets. The argument is that by holding a large stock of bonds the Fed is keeping their price higher than would otherwise be the case. And higher bond price mean lower interest rates.

While economists generally accept this view that the holding o...