Jim D. writes:

It's recession, not the shift, that's the problem.

[...]
To prevent the recession, it's likely that the government has to spend
more. Maybe the earthquake, the Olympics, and the conflicts in Tibet
(and all over the place, it seems) will cause increased spending.

I know much too little about the Chinese economy and government
policy, beyond the generalities of simple Keynesian economics. Is
there an expert in the house?
=======================
I'd also like to hear more, because my impression is that few economists are
anticipating a recession - even a growth recession - in China despite a
marked decline in exports. Some are predicting a slight slowdown in line
with state policy, and others have ratcheted up their forecasts. The IMF
recently upped its projections to close to 10% growth this year and next. Of
course, if the US and world economy really go into the tank, all bets are
off, but you seem to be assuming a recession on current trends, for which
you  may have sound reasons, but which defies the consensus outlook.

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