Ones and Tooze Will China’s Stimulus Efforts Work?
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Oct 18, 2024 China is rolling out a massive 7.5 trillion yuan stimulus to revive its economy, provoking discussions on its potential effectiveness and comparisons with past U.S. measures. The recent Nobel Prize in Economics shines a light on how institutions impact wealth and growth, particularly in contrasting histories of colonization. Listeners also hear about the personal value of confronting fears through therapy, alongside insights into creating compelling economic models that blend data with narrative. It's a thought-provoking mix of economics and personal growth!
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China's Stimulus Goals
- China's stimulus package is historically large, but its goals remain unclear.
- It aims to address short-term economic troubles, but its effectiveness is uncertain due to a lack of clear objectives.
Political Signaling
- China's stimulus primarily aims to project political control and stability.
- It signals to the party and the population that Beijing is actively managing the economic challenges.
Short-Term vs. Long-Term
- China's stimulus addresses short-term economic malaise (like pneumonia).
- It does not tackle long-term structural issues (like cancer) like real estate.
