Lee Branstetter

Sep 15, 2023 | asiatimes.com | Lee Branstetter |Mengjia Ren |Guangwei Li

Governments around the world regularly spend an enormous amount of money subsidizing businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5% of its GDP on industrial policies, more than most countries. As Chinese economy expert Nicolas Lardy shows, direct subsidies to Chinese listed companies have grown substantially from 5% of listed firms’ profits in 2010 to almost 14% in 2015. Our own calculations corroborate this upward trend.

Jul 18, 2023 | econofact.org | Carlos A. Arteta |John Campbell |Michael Klein |Lee Branstetter

· The World Bank The Issue: The recent swift tightening of monetary policy in advanced economies, especially the United States, in response to high inflation poses significant challenges to emerging market and developing economies. The international spillovers associated with rapidly rising U.S. interest rates can heighten the likelihood of financial distress in these economies; however, this likelihood depends upon the reasons why U.S. interest rates rise.