Austerity policy without currency devaluation can only hamper economic growth.

Lou Jiwei

Categorized in : Without Growth Policy Economic Growth

Containment and counter-containment are inevitable and that will be a long-term issue.

In 2008, when Lehman Brothers collapsed, we anticipated that Europe was going to have a very different bailout scheme than the U.S. because of their different political systems and different relationships between the central banks and the fiscal authorities.

relationships political different

Everyone knows the U.S. economy shouldn't be so reliant on consumption. More investments should be made.

everyone more economy knows

There are three main pillars of China's economy. One is export, which is limited by sluggish global demand. The second is investment. In many sectors, there is already too much investment and overcapacity. The third is consumption.

investment china too-much three

There is a lot of risk in the tech sector.

sector lot tech risk

Infrastructure investment can boost economic growth and employment, and, in fact, it is fiscally neutral.

economic-growth investment growth

I need to make money. If I don't, I cannot survive.

survive cannot need money

Indebted countries can only grow out of their debt troubles through strong economic growth; austerity measures alone cannot work. It is imperative to engage in deep structural reform to spur growth.

grow alone growth work

The euro zone must strike for a better governance structure, and there is no alternative to that. Euro zone countries must either develop an exit mechanism for troubled members, or it should embrace a closer political union: an effective governance structure that is capable of enforcing rules.

rules better embrace political