FRA Co-Founder Gordon T. Long interviews Leland miller, the president of the china beige book international and discusses financial repression in the context of the Chinese economy. He describes himself as a Lifelong china watcher who decided to do something about the complete lack of data in china.
“One of the things that the china beige book plans to do is to give people a real picture of not just the growth dynamics but also the labor market, the credit dynamics, the macro implications of Chinese growth, indications of future Chinese demand, implications of commodity markets round the world, we try to give the people a much better picture on what’s actually happening instead of just relying on official data and press release”.
Financial repression.
Leland describes the Chinese reform as a reversal of financial repression and this repression …show more content…
He explains the biggest misconception concerning the Chinese economy is believing the GDP tells you much about how china is doing. “It is a broad blunt indicator that doesn’t measure productive growth or credit dynamics”. On some of the challenges on getting reliable data in china, Leland explains that he and his team had to ask Chinese firms and consumers on ground what is happening in the country, and also set up a number of polling units across sectors in order to get reliable and accurate information.
Economic trends in china
“For years we have been talking about the Chinese slow down its inevitable, despite the fact that the economy has been slowing”.
He goes on to explain that although the market sentiment has gone from optimistic to “Armageddon” in recent months, the actual data is at odds with these sentiments. As a result of china’s economic slowdown there is great vulnerability among emerging markets. Now the reason for this is that for years these markets have relied on china’s demand without factoring the likelihood of a decline or certainty of a decline in china’s
“One of the things that the china beige book plans to do is to give people a real picture of not just the growth dynamics but also the labor market, the credit dynamics, the macro implications of Chinese growth, indications of future Chinese demand, implications of commodity markets round the world, we try to give the people a much better picture on what’s actually happening instead of just relying on official data and press release”.
Financial repression.
Leland describes the Chinese reform as a reversal of financial repression and this repression …show more content…
He explains the biggest misconception concerning the Chinese economy is believing the GDP tells you much about how china is doing. “It is a broad blunt indicator that doesn’t measure productive growth or credit dynamics”. On some of the challenges on getting reliable data in china, Leland explains that he and his team had to ask Chinese firms and consumers on ground what is happening in the country, and also set up a number of polling units across sectors in order to get reliable and accurate information.
Economic trends in china
“For years we have been talking about the Chinese slow down its inevitable, despite the fact that the economy has been slowing”.
He goes on to explain that although the market sentiment has gone from optimistic to “Armageddon” in recent months, the actual data is at odds with these sentiments. As a result of china’s economic slowdown there is great vulnerability among emerging markets. Now the reason for this is that for years these markets have relied on china’s demand without factoring the likelihood of a decline or certainty of a decline in china’s