The limits of RMB internationalisation

The dollar’s domination of the international monetary system, and the ‘exorbitant privilege’ it gives the US, to use the phrase of leading US monetary economist Barry Eichengreen, is clear. But is it possible to break the dollar’s dominance?As China is the world’s leading rising economy, with an economy larger than the US in purchasing power parity (PPP)…

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China’s GDP data destroys ‘hard landing’ myth again

China’s latest economic dataChina’s recently-published second quarter 2017 GDP data showed solid growth in regard to all key indicators. Year-on-year:• GDP rose 6.9 percent;• Industrial value-added rose 7.6 percent;• Retail sales grew 11.0 percent;• Urban fixed asset investment rose 8.6 percent.This is a performance exceeding any major Western economy – American GDP growth for the…

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To become a high income economy China needs to study facts not myths

​Unfortunately some discussion in the media of how China can become a ‘high income’ economy fails to follow the fundamental Chinese saying ‘seek truth from facts.’ Instead it follows a method of ‘ignore the facts, focus on inaccurate dogma.’In particular, as usual, neo-liberals avoid dealing with the facts. They suggest that to avoid the ‘middle…

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An economist’s Mein Kampf

This article, published in October 1991, accurately predicted that ‘shock therapy’ recommended for Russia by Western economic institutions, and supported by 95% of Western economists, would lead to economic catastrophe in Russia – pushing its economy backwards towards becoming a raw material producing appendage of the West. Determination that China should avoid any such economic catastrophe…

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