An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Saturday, February 16, 2013
Michael Pettis — China and the history of US growth models
Very thought provoking discussion. The contrast between the unstable banking model of the US in 19th century vs. the stable state managed Chinese model as source of development gives much food for thought. Most discussions around banking hinge on stability and correct pricing of risk. It seems to me that neither are of critical importance at certain stages of development. When there's no infrastructure everything is like "low hanging fruit" and anything built is a net gain.
There are some good comments at NC, especially by Richard Kline. One commenter mentioned Friedrich List who built upon the Hamiltonian "American System." His work has apparently been very influential in East Asia.
Very thought provoking discussion. The contrast between the unstable banking model of the US in 19th century vs. the stable state managed Chinese model as source of development gives much food for thought. Most discussions around banking hinge on stability and correct pricing of risk. It seems to me that neither are of critical importance at certain stages of development. When there's no infrastructure everything is like "low hanging fruit" and anything built is a net gain.
ReplyDeleteThere are some good comments at NC, especially by Richard Kline. One commenter mentioned Friedrich List who built upon the Hamiltonian "American System." His work has apparently been very influential in East Asia.