Chapter 7. China: Imbalances and High Saving
Author:
Mr. Shaun K. Roache
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Language:
English
Print Publication Date:
09 Aug 2013
Keywords:
BOOK; deficit; surplus; saving; product market; interest rate; current account; current account surplus; surplus country; countries domestic; private sector; Current account surpluses; Fiscal consolidation; Current account deficits; Global; Europe; household saving; IMF staff calculation; saving rate; factor market distortion; growth model; Income; Consumption; Social assistance spending; Real interest rates

Abstract

China’s rapid growth has been accompanied by large external surpluses, reflecting an exceptionally high level of national saving. Behind this high saving lie a number of distortions that have reduced welfare both in China and the rest of the world. To address this problem, policies will need to bolster social insurance, increase exchange rate flexibility, and liberalize domestic interest rates.

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Cover Global Rebalancing
Global Rebalancing
A Roadmap for Economic Recovery
ISBN:
9781475573664
Publication Date:
09 Aug 2013
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781475573664.071
Pages:
178