The impact of China's new two-child policy is likely to be just as far-reaching as that of its one-child policy – and, overall, much more positive. One key reason is that an increase in the number of children per household will force a reduction in the aggregate savings rate, thereby fulfilling a long-standing macroeconomic goal.Get ready for the world's largest national population to get larger and younger as China begins its switch from an investment-export dominated economy to a domestic consumption-based economy.
Project Syndicate
China’s Two-Child Consumption Engine
Keyu Jin | professor of economics at the London School of Economics, a World Economic Forum Young Global Leader and a member of the Richemont Group Advisory Board
2 comments:
The population is not going to increase dramatically, this is a clueless statement. The birth rate will likely stabilize at western levels which is barely at replacement rate.
Lucky for us, because if we listen to clueless economists obsessed with "growth" humanity does not stand a chance.
If it means they will spawn ever less USD zombies then this might be a positive development....
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