Victor Shih: Political Economy of Structural Adjustment (4/7)

The video discusses China's financial system, focusing on its perceived security due to high growth rates and large foreign exchange reserves. It highlights potential risks, such as negative real interest rates, porous capital controls, and wealth concentration among the top 1% of households. The analysis suggests that these factors could threaten China's financial stability if not addressed. Recommendations include raising interest rates and reducing reliance on the top 1% to mitigate risks.

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