The report aims to identify the fundamental differences between China and Japan, highlighting key distinctions to conclude that China will not experience "Japanization" or a "balance sheet recession." Key points China's economic slowdown in recent years, particularly during the post...
balance sheet recessioninfrastructureSummary China's economy remains strong relative to those of Japan, the United States, or Europe, even if growth has slowed to around 7 percent a year, these nations, after all, have experienced balance sheet recessions and the painful aftermath. China was ...
In an exclusive interview with China Daily, Lin said that the nation's potential annual growth rate in the coming decade could be 8 percent or higher, rebutting theories that economic growth will continue to drop due to such factors as demograp...
In 2023, a significant debate arose concerning the relevance of the balance sheet recession theory to China’s economic situation. This theory, which was notably applicable to Japan during the 1990s, suggests that following the burst of dual asset bubbles in the real estate and stock markets, co...
GBS shows that, while policy mistakes in large, systemically important economies can push down the entire global economy, no single economy today can lift it. In other words, cooperation is vital to prevent a classic balance-sheet recession (when asset markets deflate, and liquidity is tightened...
‘advancement of the state sector and retreat of the private sector’ is the result rather than the cause of the economic downturn; (2) aging will not necessarily draw down growth rate; (3) ‘Balance sheet recession’ will not happen in China since it is still in the process of industry...
CHINA DAILY|Top economist ardent on continued success Former senior vice-president of World Bank says China will not decline like Japan China will not follow in Japan's footsteps of the 1990s and fall into a so-called balance-she...
China’s Rare Loan Drop Stokes Fears of 'Balance Sheet’ Recession On Wednesday, the yield on seven-year government bonds dropped three basis points to 2.07%, while the 10-year yield was little changed around 2.19%. Yields hit a record low at anauctionof 20-year special government bonds, ...
As enterprises' objectives shift from profit maximization to debt minimization, aggregate demand and investment growth are constrained, leading to the balance sheet recession (Koo, 2008, Eggertsson and Krugman, 2012, Buttiglione et al., 2014). Thirdly, balance sheet expansion amplifies business ...
China's economic situation is distinctly different from Japan in the 1990s when it fell into a balance-sheet recession. The exceptionally high savings rate in China and suppressed demand for improved housing ensure that a full-scale property price collapse is unlikely. This year, the People's Ba...