Danger China is repeating America's pre-crisis errors

In 2001, policymakers in the United States made an enormous blunder. Now China may be repeating the same mistake.

Freaked out by the collapse of the dotcom bubble in March 2000, and afraid of a powerful economic downdraft following the terrorist attacks on New York and Washington in September 2001, the Federal Reserve slashed interest rates.

Between the end of 2000 and mid-2003, the Fed cut its target rate 13 times, from 6.5 per cent to just 1 per cent.

via Business feed http://www.scmp.com/business/article/1187825/danger-china-repeating-americas-pre-crisis-errors