The Recession's Real Winner

The Chinese economy has not merely survived the global recession better than most but is positively thriving. Western countries entered the crisis with high deficits and large government spending which limited their options in reacting to the crisis. China on the other hand was running a budget surplus and its banks had been reining in consumer spending and excessive credit. China was therefore able to use text book Keynesian measures to counter the recession. As a result, China has been able to direct its stimulus toward infrastructure rather than subsidies, as well as making huge investments in higher education...More