China Heads Down Japan’s Troubled Macro-Policy Path
US Treasury Secretary Janet Yellen, center, in Beijing on April 8. Yellen called on China to boost domestic demand to lower the danger of global economic imbalances.
Photographer: Pedro Pardo/AFPThe argument that China is following in Japan’s three-decade old footsteps down the path to stagnation has many problems with it. For one, today’s China still has a whole lot more urbanization and development catch-up potential than its smaller neighbor did in the early 1990s.
But the parallels with Japan nevertheless keep coming.