Jim O'Neill writes in the _Financial Times_ that: > With this move, overall gross domestic product growth will slow below 10 per > cent, but this decline will be led by exports and investment. The Chinese > consumer is going to keep on spending. In fact, judging by the ongoing > strength of retail sales, the Chinese shopper may already be spending more > than his or her equivalent in the US.
so the fall in exports and investment will lead to falls in consumer incomes but not in consumer spending? this means that Chinese consumers will get deeper in debt and/or dip more deeply into savings. is this possible, given Chinese financial institutions? how long can Chinese consumers do this? whatever happened to the marginal propensity to consume and the multiplier effect? -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
