This podcast episode explores the economic challenges facing China, particularly the recent shift in policy aimed at addressing slow growth, a struggling real estate market, and weak consumer spending. Richard Koo shares valuable insights on the crucial role of fiscal policy in addressing balance sheet recessions, while Zichen Wang sheds light on the complexities of decentralized policymaking and local government influence. The conversation highlights the urgent need for structural reforms, the difficulties of relying on export-led growth, and the importance of strengthening the social safety net to encourage savings and foster economic recovery. Listeners will gain a deeper understanding of the intricate forces shaping China's economy.
