Rebalancing growth in China
Subtitle: a three-handed approach
By: Olivier Blanchard [and] Francesco Giavazzi
Contributors: Giavazzi, Francesco; Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 05-32; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 05-32.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Number of pages: 37
Description: Our paper is an attempt to define the contours of the right macroeconomic strategy for China. In a nutshell, we believe that the package includes a decrease in saving, with a focus on private saving, an increase in the supply of services, in particular health services, and an appreciation of the RMB. This is why we refer to this strategy as a three-handed approach: action on the fiscal and budgetary front, accompanied by currency revaluation. We start by asking how the Chinese economy got to where it is - what the strategy has been since the beginning of the reforms, and what the main characteristics of the economy are today. We then ask what is the desirable path for the future, and which are the main policy tradeoffs implied by such a path. Finally, we put the various pieces together to describe what we believe is a consistent policy package. Keywords: China, growth, appreciation, services. JEL Classifications: E2, O53.
Notes: Title from cover.

"November 25, 2005"--Cover. -- "November 25, 2005 (First draft: August 1, 2005)"--Abstract, p. 1.

Includes bibliographical references (p. 36-37).

Abstract in HTML and working paper for download in PDF available via World Wide Web at the Social Science Research Network.