Kenneth Rogoff, “The Global Impact of a Chinese Recession”
The Harvard economist thinks that when the inevitable Chinese growth recession occurs, the rest of the world will suffer more than commonly assumed. First, the effect on international capital markets could be vastly greater than Chinese capital market linkages would suggest, simply because foreign firms enjoy huge profits on sales in China. Second, a Chinese slowdown spreading across Asia could paradoxically lead to higher interest rates elsewhere, particularly if a second Asian financial crisis leads to a sharp draw-down of central bank reserves (reads in 6-7 min)

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