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1/6
In its meeting last week the Politburo coined a new term, "demand-side reform", to go along the supply-side reforms it has long promised. As part of this it called for solutions to "the income gap, a flawed social security system and unreasonable... https://www.scmp.com/economy/china-economy/article/3113876/xi-jinpings-new-economic-focus-chinas-demand-reform-borrows?utm_source=Twitter&utm_medium=share_widget&utm_campaign=3113876
In its meeting last week the Politburo coined a new term, "demand-side reform", to go along the supply-side reforms it has long promised. As part of this it called for solutions to "the income gap, a flawed social security system and unreasonable... https://www.scmp.com/economy/china-economy/article/3113876/xi-jinpings-new-economic-focus-chinas-demand-reform-borrows?utm_source=Twitter&utm_medium=share_widget&utm_campaign=3113876
2/6
property prices". Although analysts and the foreign press have still largely ignored it, I expect that "demand-side reform" will be an important part of the Central Economic Work Conference later in December, and it will quickly move to the center of the policy debate.
property prices". Although analysts and the foreign press have still largely ignored it, I expect that "demand-side reform" will be an important part of the Central Economic Work Conference later in December, and it will quickly move to the center of the policy debate.
3/6
In this SCMP article Zhou Xin, interprets the use of this new phrase to mean that the CCP has rediscovered Marx and his idea of underconsumption. Demand-side reform, he says, is not just about boosting demand, as in the past, with ever more investment, but about reforming...
In this SCMP article Zhou Xin, interprets the use of this new phrase to mean that the CCP has rediscovered Marx and his idea of underconsumption. Demand-side reform, he says, is not just about boosting demand, as in the past, with ever more investment, but about reforming...
4/6
the structural and institutional impediments to demand: namely the low distribution of income to households.
I've been writing for fifteen years about how the only way China can grow without a rapid worsening of its debt burden requires just this redistribution on income...
the structural and institutional impediments to demand: namely the low distribution of income to households.
I've been writing for fifteen years about how the only way China can grow without a rapid worsening of its debt burden requires just this redistribution on income...
5/6
of income, and so of course I am a little skeptical that this time is different. If Xin is right, however, rather than just call emptily for more consumption, Beijing will try to reform the distribution of income in a way that boosts consumption sustainably.
@georgemagnus1
of income, and so of course I am a little skeptical that this time is different. If Xin is right, however, rather than just call emptily for more consumption, Beijing will try to reform the distribution of income in a way that boosts consumption sustainably.
@georgemagnus1
6/6
Pulling this off will require a very difficult redistribution of income and, with it, of political power, but it does suggest that Beijing is endorsing the "trade wars are class wars" thesis and, indirectly perhaps, Bernanke's saving glut hypothesis.
@M_C_Klein @adam_tooze
Pulling this off will require a very difficult redistribution of income and, with it, of political power, but it does suggest that Beijing is endorsing the "trade wars are class wars" thesis and, indirectly perhaps, Bernanke's saving glut hypothesis.
@M_C_Klein @adam_tooze
