May 23, 2020   |   by admin

In Restructuring the Chinese Economy, Michael Pettis outlines six paths that China can follow—the only logical paths that lead ultimately to. Avoiding the Fall: China’s Economic Restructuring. MICHAEL PETTIS. Copyright Date: Published by: Carnegie Endowment for International Peace. Avoiding the Fall has 98 ratings and 6 reviews. The days of rapid economic growth in China are over. Mounting debt and rising internal distortions mean t.

Author: Netilar Mull
Country: Chile
Language: English (Spanish)
Genre: Finance
Published (Last): 4 July 2014
Pages: 171
PDF File Size: 19.20 Mb
ePub File Size: 15.66 Mb
ISBN: 171-2-17069-597-5
Downloads: 85652
Price: Free* [*Free Regsitration Required]
Uploader: Shabei

Jan 20, Liam rated it it was amazing.

Avoiding the Fall: China’s Economic Restructuring

Jonathan Tepper rated it really liked it Oct 13, Ask most people what China’s comparative advantage is, and they are likely to say that it is the agoiding pool of cheap and disciplined labor. Nov 30, JG rated it liked it Shelves: But China’s growth is actually heavily capital-intensive. There are no discussion topics on this book yet.

Quotes from Avoiding the Fall Apr 29, Tirath rated it it was amazing. Keen was right overall but wildly wrong on detail, he made a bet that Australian houses would plummet in value which they promptly did not.

The urge The days of rapid economic growth in China are over.

Books by Michael Pettis. Pettis thinks that China is massively over investing in infrastructure and that this investment has become unproductive. Investment is important to the extent that the capital invested engineers growth, but it is not pettia to assume that every single dollar that China spends on infrastructure or some arbitrary project will do so.

This book is not yet featured on Listopia.

Avoiding the Fall: China’s Economic Restructuring by Michael Pettis

Thanks for telling us about the problem. Pettis draws apt parallels between China, and Brazil of 70s, US of the 20s and 30s, Japan of the 90s; and One of the best books I have read this year. Other editions – View all Avoiding the Fall: They also ensure that information is disseminated quickly. It may be true that labor is cheap in China, but capital is cheaper, and can even be free or have a negative cost ths a result of a negative interest rate. Over the long term, Petris growth will be much healthier and the risk of a Chinese debt crisis much reduced, but over pettiss short term, unless there is an unlikely surge in global demand, China cannot both rebalance its economy and improve its trade performance.

  ERARD 2561 PDF

The question for China is when will growth slow down? An expert on China’s economy, Pettis is a professor of finance at Peking University’s Guanghua School of Management, where he specializes in Chinese financial markets. Some of the argumentation in the book is overly thf for my taste, especially around global rebalancing.

Avoiding the Fall: China’s Economic Restructuring – Michael Pettis – Google Books

Microdcm rated it really liked it Aug 29, It is increasingly accepted that China’s growth model, which served it very well in the s and 90s, reached its useful limit during the past decade. Brazil does not fit into the group. If it does that, then it will need to return money to the household sector, which will decrease capital available for investment. Additionally, the cost of investment in one sector of the Chinese economy may bounce back to a completely unrelated sector.

Ksenia Kondrashina rated it it was amazing Jun michxel, Preview — Avoiding the Fall by Michael Pettis. These paths range from debt crisis and negative growth, at one extreme, to a massive wealth transfer from the state to Chinese households, with steady growth for many years, at the other. It may well be wrong, but it is definitely not crazy and definitely is fascinating.

The upside is that while China will slow dramatically in the rebalancing process, the shift towards consumption will partially offset that slowing and insulate the household sector. This book is already a classic for me.


Francis Dwayne rated it it was amazing Jul 17, This closed-loop system may end up being extremely harmful to China in just a few years. He also addressed a very big confusion – why has Chinese inflation been so low in the face of growing credit and very high nominal GDP growth. China’s Economic Restructuring by Michael Pettis. The downside is that notwithstanding this the most benign forms of rebalancing are politically threatening and thus, in Michael Pettis’s view, unlikely to occur.

In this sense, the burden of cost can be disproportionately spread across different facets of the economy. In the future, the availability of capital, or lack thereof, may force China to reconsider what it believes to be its most valuable economic asset.

Mounting debt and rising internal distortions mean that rebalancing is inevitable. Much of what Beijing has achieved in the recent past has been made possible precisely because it had substantial debt. Beijing has no mjchael but to take significant steps to restructure its economy. One of the best books I have read this year. Value investors allocate capital to its most productive use.

Kevin rated it really liked it Jan 25, When Brazil crashed it was not at a world leading level of wealth per capita. Sub three percent growth is a certainty. The urgent task of shifting toward greater domestic consumption will come with political costs, but Beijing must increase household income and reduce its reliance on investment to avoid a fall.