China's excess savings pose a significant risk according to Martin Wolf. The country's high savings rate has made it the global savings superpower. Wolf emphasizes the need for a new macroeconomic strategy to address income and spending distribution, foreseeing that external events will eventually compel China's leadership to act.
The most important part of Martin Wolf's latest column on China is his observation that so lon as China's savings rate stays high, the potential for a massive trade and current account surplus remains ... 1/ https://t.co/Ybij7Sl90O
Martin Wolf: “China needs a new macroeconomic strategy. This is not about another ‘stimulus’. It is about changing the distribution of income and spending. The leadership does not want to do this. But events will force its hand in the end.” https://t.co/DODnbK8G5z via @ft
Martin Wolf: "China needs a new macroeconomic strategy [to change] the distribution of income and spending. The leadership does not want to do this. But events will force its hand in the end." Fun questions: *which* events, and how long will it take? https://t.co/15770mZwwE
Martin Wolf: "Given China’s size, stage of development and excessive savings, an essential part of any strategy for macroeconomic stability must be a jump in private and public consumption as shares of GDP." 1/2 https://t.co/5H1PPKDWg2
China’s excess savings are a danger https://t.co/XrRopk4pYF via @ft
If China were an open market economy, its capital markets would be the biggest in the world - from a Martin Wolf column on the dangers of China's excess savings. It is now the superpower of global savings https://t.co/YQB6cAQA4j https://t.co/e50MC7F4mj
China’s excess savings are a danger https://t.co/j5QSI1jDqA