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Excellent comment. China overdid their stimulus package in 2008 because of the need to keep the jobs coming. If would have been much better for them if they had
by coliveira 11y ago
Excellent comment. China overdid their stimulus package in 2008 because of the need to keep the jobs coming. If would have been much better for them if they had used 2008 to slow the growth rhythm to something sustainable (4 to 5%). I think they are now headed to a very difficult transition, probably Japanese-style, because of so much debt.
- gbog 11y agoI don't know for Chinese gov but I know for sure that Chinese families are not used to buy expensive things with money they don't have, so no, I don't agree: China as a whole has a lot of real money in the pockets.
- coliveira 11y agoThis doesn't make any difference. The Japanese are even more frugal than the Chinese, that is why they have been able to support a deflationary economy for more than 20 years.