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Asset Bubble: International Experience and Status Quo in China

By Yu Bin and Li Jianwei 2012-08-27

Asset Bubble: International Experience and Status Quo in China

 

 
 

ISBN: 9787802346963

Publisher: China Development Press

Issued: August 2011

 

 

Following rapid economic growth over the past 30 years, China has entered a period of excess liquidity. The experience of countries shows that excess liquidity will not necessarily cause a sharp increase in prices in the real economy, but it will inevitably lead to an increase in asset prices and cause an economic bubble.

A bubble has already formed in China's capital market, especially in the real estate market. The huge hidden debt of local governments also indicates high fiscal and financial risks. The author conducted comparative research on the economic bubble of various foreign economies, the direction of China's economic bubble, and local debt problems, and offers measures to avoid and dissolve economic bubbles in China and also ways to deal with government hidden debt based on the experience of other countries.