Michael Pettis | TalkMarkets | Page 3
Professor at Peking University
Contributor's Links: China Financial Markets
Michael Pettis is a professor at Peking University's Guanghua School of Management, where he specializes in Chinese financial markets. He has also taught, from 2002 to 2004, at Tsinghua University’s School of Economics and Management and, from 1992 to 2001, at Columbia University’s ...more

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Does It Matter If China Cleans Up Its Banks?
An analysis of 765 banks in China by UBS Group AG shows that efforts to clean up the country’s debt-ridden financial system are well underway, with as much as 1.8 trillion yuan ($271 billion) of impaired loans.
Rebalancing, Wealth Transfers, And The Growth Of Chinese Debt
Today it no longer seems necessary to explain that Chinese debt levels are far too high.
How Much Investment Is Optimal?
Financial systems capable of taking risk and supporting new and disruptive technologies or organization structures tend to result in a greater ability by a society to absorb capital.
The Titillating And Terrifying Collapse Of The Dollar Again
Foreign perceptions about the Chinese economy are far more volatile than the economy itself, and are spread across a fantastic array of forecasts.
Will China’s New “Supply-Side” Reforms Help China? - Part 2
China produces far more than it is able to consume or demand domestically, but even with one of the highest current account surpluses in history and with explosive credit expansion inventories are rising and growth rates dropping sharply.
Will China’s New “Supply-Side” Reforms Help China? - Part 1
It wasn’t enough that we started 2016 with one of the worst weeks in the recent history of Chinese and global markets, but the panic continued into the following weeks and wreaked a great deal of damage to confidence.
China’s Rebalancing Timetable
While the differences between China and Mexico are obvious, too few analysts understand China's political economy or know much about Mexico and other developing countries that can provide a useful framework with which to understand China.
Thin Air's Money Isn't Created Out Of Thin Air
We are normally taught that banks allocate credit by lending the money that savers have deposited in the banking system, but in fact banks create deposits in the banking system by creating credit.
If We Don’t Understand Both Sides Of China’s Balance Sheet, We Understand Neither
China is a dynamic and unbalanced economic system entering into something that we might grandly call a “phase shift”.
Do Markets Determine The Value Of The RMB?
Last Tuesday the PBoC surprised the markets with a partial deregulation of the currency regime, prompting a great deal of discussion and debate about the value of the RMB.
China’s Stock Markets And Revisiting 2011 Predictions
There is nothing less ambiguous than actually buying or selling large amounts of shares.
Interpreting Information In China’s Stock Markets
We can safely say the Chinese stock market panic is over, but none of the fundamental questions are resolved so expect continued volatility. The market remains overvalued and I have little doubt we will see at least one more nasty bear market.
Internal And External Balance
Global savings and global investment must balance, if any country’s savings exceeds its investment by some amount, investment in the rest of the world must exceed savings by exactly the same amount.
What Multiple Should We Give China’s GDP Growth?
Which country has the world’s largest economy? Side cites gross domestic product adjusted for purchasing power parity and puts China on top, while various other indicators show the United States ahead.
Will The AIIB One Day Matter?
The AIIB has not explained exactly how it plans to channel money into developing countries while not wasting money, and how to channel large amounts of debt financing without creating financial distress and non-repayment risk.
When Do We Decide That Europe Must Restructure Much Of Its Debt?
It is hard to watch the Greek drama unfold without a sense of foreboding.
33 to 48 of 54 Posts