The Latest Chinese Government Stimulus Package: How Effective Will It Be? The Chinese economy continues to disappoint when it comes to deflation, consumer spending, economic growth, and recently even exports. The latest numbers in these areas are almost uniformly dismal and have prompted Beijing to finally take major action to revitalize China’s anemic economy. The question is whether or not these measures will be effective. First the most recent data, starting with the trend in prices. According to an October 13 th Reuters article , the consumer price index (CPI) increased just 0.4% from a year earlier in September, compared to a 0.6% hike in August. The September CPI rise was the lowest in three months and fell short of the expected 0.6% mark predicted in a Reuters poll of economists. The producer price index (PPI), which gauges the cost of goods at the factory gate, fell by 2.8% in September, the biggest drop in six months...