Beijing faces dual challenge in sparking real growth

Article Abstract:

China faces the challenges of reforming its state-owned firms and reviving its stagnating economy. In order to do these, it has to choose between social stability and a stable currency. The country cannot afford to devalue its yuan, less, it forfeits its chance to win a seat in the World Trade Organization. The most it can do is to increase productivity and create at least 30 to 50 million new jobs a year. Moreover, it has to implement policies that will contain capital outflows.

Intnl Affairs & Finance, National Security and International Affairs, Management, Currency devaluation, Devaluation (Currency), Government ownership, Nationalization

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Emerging markets may be going down the tubes

Article Abstract:

A crisis in emerging markets will develop, affecting Asia and Latin America, although the major economies will be little affected, since investors are less exposed and have already moved out of the weaker Asian economies. Exports from the weaker economies will become more affordable, but most of the benefit will accrue to multinational firms with operations in those countries. The cheaper imports will reduce inflation pressures in the U.S., and lead to lower interest rates.

World, Production & Business Activity, Developing countries

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China's woes lie on the supply side

Article Abstract:

China's economic advisers claim inflating demand will solve problems in the deflationary economy, which are caused by overcapacity. However, the problems and solutions really law on the supply side, and capacity should be eliminated.

China, Government regulation (cont), Administration of Urban Planning and Community and Rural Development, Economic Development NEC, Analysis, Usage, Economic development, Supply-side economics, Supply and demand, Deflation (Finance), Deflation (Economics)

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