This podcast episode delves into the economic challenges China faces, drawing parallels to Japan's Lost Decade of the 1990s. While China holds certain advantages, including lower asset prices and per capita incomes, experts warn of the risk of falling into a debt deflation loop. To avoid this, policymakers must maintain a gap between real interest rates and real GDP growth, as well as implement fiscal policies that support growth. The experiences of the Great Depression and Japan during the 1990s highlight the importance of reflationary policies in preventing economic stagnation and deleveraging.