China’s leaders are “bizarrely unwilling” to use more government spending to support consumer demand instead of production, according to Nobel laureate in economics Paul Krugman.

“The fact that we seem to have a complete lack of realism on the part of the Chinese is a threat to all of us,”

Krugman echoed criticism by U.S. economic officials including Treasury Secretary Janet Yellen that China can’t simply export its way out of trouble. The comments come amid renewed concern in the U.S. and Europe over what is viewed as Chinese overproduction and the dumping of heavily subsidized products overseas

China’s whole economic model is not sustainable because of “vastly inadequate” domestic spending and a lack of investment opportunities, he added. Beijing should be supporting demand not more production, he said.

  • Are_Euclidding_Me [e/em/eir]@hexbear.net
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    5 months ago

    Was there some meaning this article was trying to convey? I read the whole thing and my response is just puzzled

    I got literally, absolutely nothing from reading all those words, and I’m pretty sure that’s not my fault.

    Also, and this is a small thing, I know articles are published with typos all the time, but the following sentence makes no sense, right? Like, the grammar is wrong to the point where the sentence is meaningless, isn’t it? I’m not just misreading things entirely?

    Krugman reiterated his view that it’s better to cut rates soon with the chance of re-accelerating inflation looks very small if the Fed cuts rates.