BILL FROM THE CHINA SHOP: HOW ASIA'S SAVINGS GLUT THREATENS THE WORLD ECONOMY
by DUMAS, CHARLES;CHOYLEVA, DIANA
List Price: HK$ 150.00
ˇ@ISBN
9781861978714
ˇ@Subject
BUSINESS & FINANCE
ˇ@Publisher
PROFILE BOOKS
ˇ@Publication
2006
ˇ@Edition
Paperback
ˇ@Version
Original
ˇ@Description
Alan Greenspanˇ¦s tenure at the US Federal Reserve has witnessed unparalleled global prosperity. But the world economy has been warped by excessive saving in China, developing Asia, Japan and north-central Europe. We all now depend on unprecedented current account deficits and the willingness of America, Britain, Australia and increasingly Mediterranean Europe to import goods and capital. This has led to a huge build-up of domestic debt. Household debt is soaring relative to income. Easy money policies inevitably lead to over-stimulation and the risk of a slump. The confidence and capital gains needed to sustain large fresh take-up of debt, year after year, stoke the boom. But interest rate increases are now needed to contain inflation. When rates reach a level that saps confidence, with an overhang of excessive debt, household demand could collapse. The financial and geopolitical consequences will be profound.
