Summary of Charles Goodhart & Manoj Pradhan's The Great Demographic Reversal

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 China’s contribution to global disinflation of the last 35 years and its coming reversal needs to be understood through the lens of history and an understanding of its growth model in the global context.

#2 China’s ascent can be traced back to three events and periods. The first was reforms to agriculture in 1978, which led to the creation of special economic zones where foreign investment was allowed. In the second phase, privatisation of state-owned enterprises began in 1992.

#3 China’s economy grew greatly between the time it gained WTO membership and the global financial crisis, and it was able to use that growth to its advantage. It became a superpower in the world economy, and its position was cemented after the global financial crisis.

#4 China’s aggressive response to the Great Financial Crisis was a major factor in preventing the collapse of the global economy. China’s credit growth surged in the early 90s and after the Great Financial Crisis, and was a major factor in buoying global growth, commodity prices, and emerging market economies.

• Language: English
• Publisher: IRB Media
• Release date: Apr 21, 2022
• ISBN: 9781669388722

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

Book preview

Insights on Charles Goodhart & Manoj Pradhan's The Great Demographic Reversal

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 9

Insights from Chapter 10

Insights from Chapter 11

Insights from Chapter 12

Insights from Chapter 13

Insights from Chapter 1

#1

China’s contribution to global disinflation of the last 35 years and its coming reversal needs to be understood through the lens of history and an understanding of its growth model in the global context.

#2

China’s ascent can be traced back to three events and periods. The first was reforms to agriculture in 1978, which led to the creation of special economic zones where foreign investment was allowed. In the second phase, privatisation of state-owned enterprises began in 1992.

#3

China’s economy grew greatly between the time it gained WTO membership and the global financial crisis, and it was able to use that growth to its advantage. It became a superpower in the world economy, and its position was cemented after the global financial crisis.

#4

China’s aggressive response to the Great Financial Crisis was a major factor in preventing the collapse of the global economy. China’s credit growth surged in the early 90s and after the Great Financial Crisis, and was a major factor in buoying global growth, commodity prices, and emerging market economies.

#5

The Chinese growth strategy was designed to direct domestic and global resources to accelerate manufacturing and investment. Its advantage was its massive and heavily underutilized supply of labour.

#6

China’s capital controls allowed it to recoup the benefits of global low interest rates, and the country accumulated capital when its cost fell due to global forces or policy-led distortions.

#7

China’s interest rate market was effectively insulated from the rest of the world, thanks to the restrictions on capital controls. Interest rates were set well below the rate of growth and the rate of inflation. As household savings were collected by banks and redirected towards SOEs, the tax on households became a subsidy for SOEs.