China Still Needs Expansionary Economic Policy

To consolidate its post-pandemic growth momentum in 2021, China should not be in a rush to exit from expansionary fiscal and monetary policy. The government may have to issue more bonds than planned, and the People’s Bank of China may need to implement quantitative easing to facilitate this. Read Here | Project Syndicate

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Who’s Right On Inflation?

As in the 1970s, a severe economic shock has forced governments to pursue massive fiscal and monetary expansion, thereby sowing fears of future inflation. But not all shocks are the same, and the key question now is whether we can be confident that the current state of exception will end. Read Here | Project Syndicate

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India’s Economy Is No Longer One Of The Cool Kids

India isn’t keeping the best company. When Reserve Bank of India officials reviewed the global economy at February’s meeting, they ticked off a list of major emerging markets that had struggled: China, Russia, Brazil and South Africa all got a must-do-better grade. Disappointing numbers released Thursday mean policy makers can add one closer to home: India […]

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Addressing the Dark Side Of The Crypto World

Whether Bitcoin’s value goes up or Bitcoin’s value goes down, people around the world are asking the same question: What exactly is the potential of crypto-assets? The technology behind these assets—including blockchain—is an exciting advancement that could help revolutionize fields beyond finance. It could, for example, power financial inclusion by providing new, low-cost payment methods […]

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China’s Debt Bomb

It’s a bomb! A mountain! A horror movie and a treadmill to hell! To doomsayers, China’s $25 trillion pile of public and private debt is a threat to the global economy. Or maybe it’s just a manageable byproduct of the boom that created the world’s second-biggest economy. Read Here – Bloomberg

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Pakistan’s Debt Dynamic

An oft-overlooked aspect of Pakistan’s debt situation is the political economy. There is an inherent asymmetry between the ‘benefits’ derived from new debt undertaken, and the burden of its repayment. There are two facets worth considering. First, those segments who tend to ‘benefit’ from the debt contracted (the elite) are usually different from those who […]

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A False Alarm About China

China’s growth has slowed largely as a result of changes in its fundamentals: less favorable demographics, a shift in emphasis from exports and public investment to the service sector and domestic consumption, and lower demand from advanced economies. But China’s past success also contributed to this slowdown, in the form of higher wages, which narrow […]

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What’s Behind Chinese Leaders’ Response to the Market Crisis?

The current China conundrum lies in both economic and political dimensions, although much of the alarm about China’s economic downturn appears to be misplaced or overstated. China’s economic fundamentals essentially are solid. Multiple indicators point to a growth slowdown that remains broadly in line with the leadership’s game plan, and the authorities can draw upon […]

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China Has Lots of Treasuries, Not Much Leverage

During the last U.S. presidential election, an editorial in a Chinese state-run newspaper declared that if Washington insisted on flouting Chinese interests (by selling arms to Taiwan, for example), Beijing should “use its financial weapon to teach the U.S. a lesson.” Three years later, America owes even more to China than the $1.16 trillion it owed then. […]

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