China: Capital Stock….and Flow

Recently there have been several articles written on the China’s capital stock. The argument in most of these pieces is that China’s capital stock per capita is low and thus claims of overinvestment in China are incorrect. Just to recap, the capital stock is a broad measure of the existing physical capital in an economy. […]

Can Microcredit Lenders Fill the Gap?

The Chinese press is full of stories documenting the difficulties small and medium enterprises (SMEs) have obtaining financing. Contrary to popular belief, the problem is not that SMEs are being crowded out by large enterprises. The SME share of total business loans has been relatively stable in the past several years. Moreover, the pace of […]

Chinese Household Wealth and the Housing Market

The Chinese housing market is clearly undergoing a correction that may eventually bring housing prices back to a more reasonable level. As the past several years have made all too apparent, housing downturns are economically painful and can lead to larger economic crises. The network of financial leverage that fueled the US housing bubble turned […]