G-20

The Main Cause of China’s High Savings: Income Suppression for High Investment

March 21, 2011

As was suggested in an earlier post, China has an unusual low level of consumption and unusual high level of investment and savings.  The high level of savings is not, as is often assumed, attributable only to an increase in household savings, but to a rise in savings in the corporate and government sectors.  From 2000 to 2008, 80% of the increase in China’s gross national savings took place in the government and corporate sectors, not among households.  (The savings rate data for this post is based on the

Putting China’s Low Household Consumption in Perspective

March 15, 2011
Publication Image

It is widely known that China needs to rebalance its economy to rely more on consumption, but the extent of China’s imbalance between consumption and investment is not fully appreciated.  Comparisons to other emerging markets and countries like Japan, Taiwan, and Korea that pioneered the East Asian growth model show that China’s low levels of consumption are unparalleled.

Is China an Engine or Drag on Growth?

March 3, 2011

China has grown rapidly for over a few decades but the engine of China's recent growth may be reaching its limit. Are the rapid GDP gains from its fixed investment and export model coming to an end?  And what, if anything, will replace it, and with what consequences for the world economy?

Inflation - The Double Edged Catalyst?

March 4, 2011
Publication Image

-- This is a guest post by Jay Pelosky, Principal, J2Z Advisory, LLC --

I recently attended a very interesting roundtable on China’s future growth path, led by The New America think tank and the World Policy Institute.

While listening to the debate over China’s need/ability to change its economic model, it struck me that the catalyst for such change could be developing right before our eyes – namely, inflation.

A ‘Jobs First’ Growth Strategy

  • By
  • Leo Hindery,
  • New America Foundation
March 1, 2011

The opening theme of the 2011 State of the Union address, and the theme that the President has carried forward since then, was his insistence that the nation has at long last emerged from economic crisis.  He said: “Two years after the worst recession most of us have ever known, the stock market has come roaring back.  Corporate profits are up.  The economy is growing again.  And after two years of job losses, we’ve added private-sector jobs for 12 straight months -- more than 1 million in all.”

Getting Rebalancing Right

  • By
  • Samuel Sherraden,
  • New America Foundation
November 23, 2010 |

Ben Bernanke's most recent assessment of the world economy was phrased with the requisite diplomatic tact. "Persistent imbalances" in global trade, the U.S. Federal Reserve chairman explained in a speech at the European Central Bank on Nov. 19, "represent a growing financial and economic risk." But Bernanke's target was unmistakable: In what has become a constant refrain from the U.S. government, the Fed chief put the onus on China and other emerging markets for jeopardizing global recovery by not doing enough to reduce their trade surpluses. U.S.

Five G-20 Countries Placed on Current Account Surplus Watch

November 10, 2010

Five G-20 nations have been placed on the Current Account Surplus Watch for having excessively large current account surpluses and for not taking adequate corrective measures.

A Recovery At Risk

  • By
  • Sherle R. Schwenninger,
  • Samuel Sherraden,
  • New America Foundation
October 11, 2010

Click here to download the slideshow, "A Recovery at Risk."

The G-20 Blues

  • By
  • Reihan Salam,
  • New America Foundation
June 28, 2010 |

At this year's G-20 summit in Toronto, the world's leading economies sealed their fate. Rather than reach a consensus on the need for fiscal consolidation or for more aggressive fiscal stimulus, the assembled officials have, in scrupulously diplomatic and often hilariously vague language, agreed to disagree on the future direction of the global economy. The U.S. will continue to borrow vast sums in an effort to keep demand afloat, a policy that will aid exporters in Europe and East Asia and the oil-rich states of the Gulf.

U.S. and Europe: Shaping a New Model of Economic Development

  • By
  • Sherle R. Schwenninger,
  • New America Foundation
June 1, 2010

The Great Recession of 2008-09 has put enormous strain on the social contracts of Western economies. This paper provides an American perspective on how well the social welfare systems of the United States and the European Union countries have performed in cushioning their populations against the economic dislocations associated with the Great Recession and how effective U.S. and European policy has been in softening the severity of the recession and in creating the conditions for future socio-economic progress.

Syndicate content