Monday, March 30, 2015
  1. China’s Credit Overdose

    Zhang Jun

    China’s Credit Overdose

    0

     warns that potential growth cannot be achieved until the bad-debt problem is resolved.

    Nanjing road Shanghai L1mey/Flickr

    Despite rapid credit expansion in the last two years, China's GDP growth has decelerated sharply. This disparity reflects the accumulation of massive debts, which require an ever-increasing amount of liquidity to service. READ MORE

  2. Secular Stagnation for Free

    Ricardo Hausmann

    Secular Stagnation for Free

    7

     argues that much economic progress goes unmeasured, because no one is paying for its benefits.

    Facebook logo beach mkhmarketing.wordpress.com/Flickr

    For some reason, achieving a level of investment that would generate full employment seems to require negative real interest rates, which is another way of saying that people have to be paid to invest. In fact, to harness the possibilities of new technology, we may need non-market forms of payment for valuable contributions. READ MORE

  3. A Window on China’s New Normal

    Martin Feldstein

    A Window on China’s New Normal

    2

     explains how the country’s leaders have reconciled themselves to slower economic growth.

    Bank of China skyscraper MASON (alex55)/Flickr

    At this year’s China Development Forum, virtually every official in attendance accepted that GDP growth will continue to slow. They now seem to understand that this will not fuel unemployment, because the slowdown reflects China’s structural shift from heavy industry to more employment-intensive consumer services. READ MORE

  4. Europe’s Easy-Money Endgame

    Hans-Werner Sinn

    Europe’s Easy-Money Endgame

    7

     shows why quantitative easing by the ECB, rather than saving the euro, may cause its messy demise.

    Euro monopoly houses TaxRebate.org.uk/flickr

    Rescue packages have relieved the eurozone’s financial distress, but at a high cost. Not only have they enabled investors to avoid paying for their poor decisions; they have also allowed overpriced southern European countries to defer real depreciation, which is necessary to restore competitiveness. READ MORE

  5. Sustaining the Unsustainable Eurozone

    Yannos Papantoniou

Focal Point

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310 pages
310 pages

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