Current Account Surplus May Damp The Effects Of China's Credit Boom

January 21st, 2015
in econ_news

from the Dallas Fed

Analysts and the financial press have scrutinized the buildup of private sector borrowing in China over the past few years. Debt accumulation seems eerily familiar to what occurred in past credit booms, most notably in the euro zone periphery in the mid-2000s and in East Asia a decade earlier.

Follow up:


There was no buildup of leverage in China prior to the global financial crisis in 2008, though there was a rapid rise in leverage afterward, mainly the result of government investment-led stimulus efforts that drove China's postcrisis recovery. The major banks in China are state owned, and the government directed them to increase lending in the dark days of the global financial crisis to drive a credit-fueled investmentled recovery.

[click on image below to read the entire study]

Source: http://dallasfed.org/assets/documents/research/eclett/2015/el1501.pdf









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved