Does a weak social safety net hold back private consumption in China?
Nicholas R. Lardy Μany experts see China’s economy as constrained because of a weak social safety net, especially the retirement system, resulting in anemic domestic consumption spending. This view is out of date. Recent data indicate that China has expanded many parts of its social safety net and that consumption spending has accelerated. Social expenditures […]
The narrowing path: Trade and development in a new era
Pinelopi Goldberg Michele Ruta For decades, international trade has been a powerful engine of development. Countries like South Korea and China achieved remarkable transformations – moving from low-income agricultural economies to industrial powerhouses within a generation. This column argues that today’s developing countries are unlikely to be able to replicate these success stories. International trade will […]