Nouriel Roubini’s RGE Monitor today looks at China’s economic outlook and finds that with significantly slowed Chinese growth, the nature of the bilateral economic relationship that defined the world economy over the last several years — a high U.S. trade imbalance with China driven by U.S. consumption and Chinese saving — is inevitably changing: . . . Despite the fact that China’s aggressive policy response included monetary easing, scaling up of bank lending and a particularly aggressive scaling up of government investment to offset the contraction in private demand, there is an increased risk that China will grow only in […]
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