China’s boom times are over. With global investor sentiment slipping, concerns are rising about spillover effects of a faltering Chinese economy on global markets and institutions. Although the facts of the problem are well known, fixing it is another issue—the reach and pace of fundamental economic policy choices have been subject to debate. In September 2015, Willem Buiter, Chief Economist at Citigroup, and his team published a research note stating that it was likely that the global economy would soon slip into recession, caused by sluggish growth in emerging markets, especially China. In this interview, Buiter assesses Chinese economic growth and the potential for global recession.
No. Some Pain is Necessary in the Short Run The slow recovery of the US economy and the deep recession in the eurozone have cast a long shadow on the global economy. Given the strong headwinds faced by China’s exporters and the weak domestic demand, many have advocated another stimulus package to arrest the […]
Yes. It could Energize the Faltering Economy China’s 2008 economic stimulus has led to concerns that if another such package were to be introduced today, it would lead to similar problems of overinvestment, overcapacity, increased social inequality and rising local debts. I, however, feel that these fears are misplaced. Since 2008, the Chinese economy has […]