Limit search to available items
Book Cover
Author DeWeaver, Mark A., 1962-

Title Animal spirits with Chinese characteristics : investment booms and busts in the world's emerging economic giant / Mark A. DeWeaver
Published New York : Palgrave Macmillan, 2012


Description 1 online resource
Contents Introduction and overview -- Investment with Chinese characteristics -- Socialist booms and busts -- A history of the cycle -- Warped incentives and "second-best" efficiency -- Banking and finance run Amok -- Taking away the ladle -- Suppressing "blind" investment -- Scientific development: master plan or myth? -- Conclusion
Summary "Will China eventually be able to eliminate its socialist animal spirits? This is an important prerequisite to achieving its long-sought transition from extensive to intensive growth. Such a transformation would clearly require removing much of the economic power now enjoyed by local governments while at the same time hardening the budget constraints of the current system's principal beneficiaries. Such changes are unlikely in the absence of political reform. This title highlights the importance of China's investment booms and busts for both the Chinese and the world economy, describes the origins and evolution of the investment cycle during the command economy period. It will show how the animal spirits of the command economy era have been transformed by the introduction of capitalist economic institutions. In order to do so, the author carefully considers the banking system, which more often than not is on the losing side of these bets, a major source of speculative flows into the stock and property markets and the counter-cyclical monetary policy. Concluding, DeWeaver analyzes the use of administrative measures to manage the economy, which still work in much the same way as they did during the command economy period. Ending an investment boom continues to be primarily a matter of introducing new policies or the more strict enforcement of existing ones. And stimulus remains mainly a matter of policy relaxation - particularly the relaxation of financial sector prudential regulation."-- Provided by publisher
"Animal Spirits with Chinese Characteristics is the first detailed account of the investment booms and busts that drive China's business cycles. The book looks first at the causes of these fluctuations, then examines the central government's countercyclical policy responses. The author shows that the volatility of Chinese investment is primarily the result of perverse incentives inherited from the command-economy era. Beijing's most effective countercyclical policies therefore still take the form of ad hoc administrative interventions. Contrary to popular belief, Beijing cannot "fine tune" the economy. It also stands little chance of transitioning to a less volatile "mode of growth.""-- Provided by publisher
Bibliography Includes bibliographical references and index
Notes English
Print version record
Subject Investments -- China
Business cycles -- China
International economics.
Economic growth.
Economic forecasting.
BUSINESS & ECONOMICS -- International -- Economics.
BUSINESS & ECONOMICS -- Investments & Securities.
BUSINESS & ECONOMICS -- Money & Monetary Policy.
BUSINESS & ECONOMICS -- Corporate & Business History.
BUSINESS & ECONOMICS -- Economics -- Microeconomics.
Business cycles.
Form Electronic book
ISBN 9781137110121