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Given the structure of the economy and the levers in the hands of the authorities, only investment could be increased quickly enough and on a large enough scale.
As a result the share of gross investment in GDP soared from an already extremely high 41 per cent of GDP in 2007 to 48 per cent in 2010. This huge investment boom maintained measured growth at close to 10 per cent after the crisis. It also led to a huge and sustained surge in debt, predominantly to non-financial corporations, including off-balance sheet local government financing vehicles. But ominously, far from raising China’s underlying rate of growth, a marked slowdown followed.
In the longer term, China’s raised investment rate has delivered the disturbing combination of more debt and slower growth.
[...]
It was as though the high-income countries had passed the credit baton to China. For Beijing, this response to the financial crisis had an additional drawback — distracting it away from a necessary rebalancing of its economy.
Динамиката на дълга от 2001г. насам в развития свят (червената линия) и Китай (синята линия)
Then, in 2008, came the meltdown of the western financial system and subsequent deep recession in high-income countries. China responded with a huge investment programme amounting to some 12.5 per cent of GDP, probably the biggest ever peacetime stimulus.
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”
Nobody Understands What Economics Graduates Are Trying to Say
Graduates in the subject are lacking key skills, according to campaign group Rethinking Economics, whose research published Thursday analyzed interviews with key employers including the Bank of England and the Government Economics Service. These include the ability to think critically, apply economic reasoning to real-word issues and communicate in language comprehensible to those outside the profession.
These shortcomings mean that economists are unable to explain the ideas backing political decisions to the public, resulting in “a large democratic deficit” and a distrust of experts and policy makers, the report said.
Ако е за шистов газ - за мен погрешен ход (дългосрочно погледнато) на ВНР... а ВР пък... не знам - съвсем ще се набият в дългове, и без това са позатънали доста покрай глобата за разливът в Мексиканският залив.
ВР си имам... ВНР пък тъкмо днес щях да пазарувам - и - акцията скочи - баси каръщината - все на мене ще ми се случи, баси.
Мразете ме ако щете - Гарванът Селдън тоже не са го обичали :-)
“Markets stop panicking when policy makers panic,” analysts at BAML said, saying long BRICs against short FAANGs was a good trade for the third quarter
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