economics
Imported tag from Readwise
economics
the need for social safety nets to stimulate domestic demand. I will argue that the need for social safety net is for the purposes of social harmony rather than for increasing the ratio of consumption in China.
Michael Pettis • The Great Rebalancing
Xi’s growing emphasis on making China economically self-sufficient—a strategy that is itself a response to perceived efforts by the West to isolate the country economically—has increased, rather than decreased, the pressures leading to overproduction. Moreover, efforts by Washington to prevent Beijing from flooding the United States with cheap
... See moreZongyuan Zoe Liu • China’s Real Economic Crisis
China's leader, Xi, is focusing more and more on making sure China can take care of its own economy. This change is happening because he feels that other countries, especially in the West, are trying to cut China off economically. As a result, China is producing too much stuff, more than it can sell. Meanwhile, the U.S. government is trying to stop China from sending a lot of cheap products to America, but this might just create new problems for the U.S. economy. Instead of solving China's problem of making too many goods, it could make that problem move to other countries around the world.
Nominal spending in the economy can originate from one of three sources: income, borrowing, or the sale of assets.
Prometheus Research • What Drives Commodities? - Prometheus Research What Drives Commodities?
They asked a basic question of their portfolio: If we can find many different arbitrage or relative value strategies that all look individually attractive, might they look even better when combined in a certain way?
Ludwig B. Chincarini • The Crisis of Crowding
Restrictive assumptions such as ‘rational expectations’ (Lucas 1976; Muth 1961), representative rational agent modelling, probability theory, and stochastic modelling fail to support understanding as in a crisis we face the uncertainty described by Frank Knight (Knight 1921). Arguably, this is one of the key challenges that Keynes (1936) addressed
... See moreRichard Simmons, Paolo Dini, Nigel Culkin • Crisis and the Role of Money in the Real and Financial EconomiesAn Innovative Approach to Monetary Stimulus
This consumer-to-producer shift means tariffs have repercussions for a country’s gross domestic product, or the value of the goods and services produced by its businesses and workers. Because everything an economy produces is either consumed or saved, any policy that raises production relative to consumption automatically forces up the domestic
... See moreMichael Pettis • How Tariffs Can Help America
When Beijing’s economic planners do talk about consumption, they tend to do so in relation to industrial aims. In its brief discussion of the subject, the current five-year plan states that consumption should be steered specifically toward goods that align with Beijing’s industrial priorities: automobiles, electronics, digital products, and smart
... See moreZongyuan Zoe Liu • China’s Real Economic Crisis
Illusion of Consumer Choice in China's E-Commerce Landscape: The e-commerce landscape in China presents consumers with a vast array of products and services, creating an impression of abundant choice. However, this perception is often misleading, as a few large companies dominate the market, shaping consumer preferences and limiting true diversity. As a result, many consumers may unknowingly participate in a system that prioritizes the interests of these dominant players over genuine choice.
It made no sense for them to target capital investment at thin-slab casting, positioned as it was in the least-profitable, most price-competitive and commodity-like end of their business.