Re: China

[Juan Jose Barrios <jota@xxxxxxxxxxxxxx>]

At the risk that Warren considers me part of the "Western Educators", an
interesting question (for me at least) is the following: what are the internal
conditions that would allow the chinese govt. to follow that policy w/out
fostering "evils" such as inflation, fiscal and external inmbalances and (most
important) can that policy be replicated in other countries in the developing
world, such as mine, Uruguay (we are in the middle of such debate, by the way,
with our govt. following strict Wash. Concensus recommendations and the political
oposition claiming for more proactive policies....)

In a world going into deep recession, it makes a lot of sense to rely in internal
markets to boost growth and employment, specially in large countries such as
China. But what about small countries relying in exports?

Warren Mosler wrote:

> Their risk is that their 'Western Educations' block sound policy.
>
> w
>
> "Henry C.K. Liu" wrote:
>
> > The most encouraging part is the government's decision to continue to raise
> > wages by 30% a year.  Also, anticipating a contraction of export, a new
> > ecoomic policy to stimulate domestic consumption and development will keep
> > growth above 7%.  A record deficit of 309 billion yuan ($36.68 billion) is
> > projected for 2002.
> >
> > Henry C.K. Liu
> >
> > Warren Mosler wrote:
> >
> > > China's Zhu Vows to Keep Up Government Stimulus Spending, Create More
> > > Jobs
> > >                      Chinese Premier Zhu Rongji said the government will
> > > keep up a spending campaign to stem rising
> > >                      unemployment, boost farmers' income and sustain
> > > growth in Asia's second-largest
> > >                      economy. More...
> > >
> > > Fyi,
> > >
> > > This could be how China passes us by.
> > >
> > > w