Recent articles on economic recovery

Professor Cheung has recently written a series of articles of economic recovery. There are a few interesting issues that can be discussed.

1. He supported China’s government spending plan but insisted that Keynesian approach ought not be adopted;

2. 「金融机制出了大事,人民之间的财富会有转移,而不少财富可能蒸发了,但美国鼎盛的人材依旧,资源依旧,厂房楼宇依旧,江山也依旧——生产力当然不变。」Is it true that productivity really remain to be the same?

3. 浮沙指数——借贷与抵押的比率, should we blame 高浮沙指数given that the 指数is generated from the market? BTW, I would argue that 浮沙跟泡沫都是指同一樣的現象;

4. 「财富等于收入除以利率(W=Y/r),调整的机制过程可以很复杂,这里不说。财富(W)一下子暴跌,不回升,收入(Y)与利率(r)一定要调校。市场的利率(不是贴现率)向下调校不易:银行的借与贷皆不易(解释过了),而就是市场利率被政府所迫而下降,借贷难行这利率没有意思。余下来是收入(Y)的向下调校了。所谓收入,其实是物价乘产量(P x Q)。选择物价下降还是产量下降呢?当然选物价下降,因为物价只是交易的媒介,但产量却是人民享用的饭碗。以产量下降调校,苦不堪言也。」

Despite that both W and Y drop and r increases during the financial tsunami, I am not sure if the above logic flows (i.e. W drops and thus leads to…..).

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One Response to Recent articles on economic recovery

  1. Zhaofeng Xue says:

    Friends,

    I have a number of critical posts on Prof. Cheung’s recent opinions with respects to regional competition, RMB policies, and bail-out solutions. I would love to hear from you if you have any comment.

    Attached please find a list of the posts. The portal page is at http://xuezhaofeng.com/blog/?page_id=250. You could easily find the section of “评议张五常观点” in the right hand side column on that page.

    Regards,

    Zhaofeng

    我们的什么是人类历史上最好
    不升值与一篮子是自相矛盾
    没有未来就不会有财富
    一篮子物品无助解决央行难题
    货币不像水而像蜂蜜
    稳住了汇率,引入了通胀
    汇率策略的悖论

    [editor note: links have been added to the about article titles.]

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