CHINA’S MACROECONOMY: AN INTERNATIONAL VIEWPOINT OF GLOBAL FISCAL CATASTROPHE

ABSTRACT

This paper provides a quick review of the increasing importance of China within the world economy and discusses the upshot effects of the worldwide money crisis on China’s money markets and macroeconomy. It presents and critiques alternative routes of estimating these effects. Contrary to a lot of well-liked discussion, China was hit fairly onerous by the worldwide recession generated by the money crisis. It suffered a large drop by exports, and these effects on the economy were solely part offset by China’s large input program. whereas growth remained well higher than international averages, its drop was of constant order of magnitude as for the us. The paper closes with a quick discussion of a number of the key challenges facing China to rebalance its economy so as to sustain high growth.

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