Wednesday, February 12, 2014

Lin Yifu — Western Analysts Are Wrong: China's Economy is Going Strong

BEIJING -- The Third Plenum of the Chinese Communist Party's 18th Congress took place in November 2013 amid widespread calls for drastic economic reforms. Many analysts and commentators claim that the Chinese economy is stalling because of systemic problems and, therefore, nothing short of fundamental structural changes can save it from a precipitous downward spiral in growth rate.

Furthermore, many have suggested, slowing growth will exacerbate social problems such as the wealth gap and lead to political instability.

They are misjudging the state of the Chinese economy and its trajectory. China is actually on course to achieving 8 percent annual GDP growth for the next 10 to 15 years or longer. The sweeping economic reform agenda announced at the recent plenum was designed to further propel this growth and cover potential downside risks, not to save the economy from impending catastrophe....
The Huffington Post
Western Analysts Are Wrong: China's Economy is Going Strong
Lin Yifu | Former Chief Economist and Senior Vice President of the World Bank

3 comments:

Stephen Ferguson said...

Tom,

Completely different topic I know, but I don't know how else to get in touch.

I know you often post on the serious flaws at the heart of mainstream economics, and so I wonder if it would be possible to put up a post linking to the following article...?

"What if ... economics became a science?‏"

http://www.theecologist.org/blogs_and_comments/commentators/2255172/what_if_economics_became_a_science.html

Regards

Stephen

Tom Hickey said...

@ Stephen

OK.

Short answer. Depends on what you mean by science.

Are we worshipping words here, or seeking true knowledge v. opinion and belief.

Stephen Ferguson said...

Thanks Tom,

MMT, like all branches of heterodox economics, is based on empirical and measurable evidence subject to specific principles of reasoning - In other words MMT is scientific

The economic mainstream on the other hand practices Cargo cult science - an endeavor that has a semblance of being scientific, but does not in fact follow the scientific method.