Lessons Learned From Japan in the Late 80s and China at the Present

Frederick: We've highlighted some key parallels between Japan in the late 80s and China at the moment but we've also discovered that there are some really big differences in the way these economies work. So from here on we try to draw a couple of conclusions, a couple of lessons really out of that. As an economist what would you say are the key lessons we can learn from Japan for China now? Fred: Don't be too shy on stimulus as one. The other one is really you have to combine stimulus with structural reforms even Japan had enormous distortions in the 1990s and was very important to clean it up.