Harvard's Rogoff Says Next Global Crisis to Come From China

The video discusses the lack of foresight in predicting financial crises and highlights concerns for 2018, focusing on low real interest rates and their impact on asset prices. It identifies emerging markets, particularly China, as vulnerable to financial instability. The discussion includes the challenges China faces in maintaining growth without increasing debt and the difficulty in predicting financial crises due to weak indicators.

What is one of the main risks to financial markets discussed in the video?

• Rising unemployment

• Decreasing asset prices

• Low real inflation-adjusted interest rates

• High inflation rates

Which country is highlighted as a potential source of a global financial crisis?

• China

• Brazil

• United States

• Italy

What challenge does China face in maintaining its growth rate?

• Lowering interest rates

• Controlling debt levels

• Increasing exports

• Reducing inflation

What makes it difficult to predict financial crises according to the video?

• Rapid technological changes

• Unpredictable government policies

• Weak indicators

• Lack of historical data

What is a characteristic of centrally planned economies like China that affects their financial stability?

• Quick absorption of economic shocks

• Lack of government intervention

• High levels of private investment

• Dependence on foreign aid