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Did Financial Innovation Cause Deng Xiaoping’s Economic Reforms?
Did Financial Innovation Cause Deng Xiaoping’s Economic Reforms?
Eugene Fama makes a curious claim on behalf of financial innovation since 1980: But suppose we buy into the more common negative current view of finance. There is still a big open question. Beginning in the early 1980s, the developed world and some big players in the developing world ...
Is China the Next Enron?
commonsensewonder.blogspot.com — Sounds like much of Chinese growth is manufactured, and not in the good sense. Another interesting report... is here : First, they point to the enormous Chinese economic stimulus effort — with the government spending $900 billion to prop up a $4.3 trillion economy. “Yet China’s economy, for all ... (more) Is China the Next Enron?
How Hath The Mighty Fallen
themoderatevoice.com — Try to imagine. It’s 20 years ago. It’s 1989 and you come across the following headline, a... headline that actually appeared on today’s New York Times website: “China Helps Build Huge Texas Wind Farm.” In 1989 you probably would have laughed, thinking this headline ... (more) How Hath The Mighty Fallen
A Real Estate Crash in China -- Literally
A Real Estate Crash in China -- Literally
directorblue.blogspot.com — Mish, writing at his phenomenally successful Global Economic Analysis site, has the true tale of a real... estate crash in China. A real crash, that is.Here are some images Bill Hopen, my sculptor friend sent me regarding a real estate crash in China... Yes, It's a 12 story building lying flat on ... (more) A Real Estate Crash in China -- Literally
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The lost generation
Paul KrugmanMatthew Yglesias catches Eugene Fama making a strange assertion : Beginning in the early 1980s, the developed world and some big players in the developing world experienced a period of extraordinary growth. It’s reasonable to argue that in facilitating the flow of world savings to productive uses around the world, financial markets and financial institutions played a big role in this growth. The assertion about developed countries is, of course, entirely wrong. From Angus Maddison’s dataset: And as Matt points out, the giant success story in the developing world was ...

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