Lardy

Lardy (Peterson Institute for International Economics) explains China's economic policy during the global financial crisis of 2008-09 and analyzes the challenges China's leadership faces in sustaining growth over the medium term. The author argues that the policies that brought China through the global financial crisis will not be as successful in the near future. Of special concern are China's very low share of private consumption expenditure and its super-elevated share of investment in GDP, as well as its outsized manufacturing sector paired with its small service sector, and its unsustainable rate of investment in residential property. The author contends that fixing these imbalances requires market-oriented reforms, especially in the financial sector, the exchange rate regime, and the price of energy and water. Annotation 穢2012 Book News, Inc., Portland, OR (booknews.com)