The Macroeconomic Consequences of China's Partially-Reformed Economy

Reading the Macroeconomic Tea LeavesThe annualised growth rate for China in the first half of 2003 was 8.2% compared with 8.0% in 2002, and inflation was -0.4% for the first half of 2003 compared with -1.3% in 2002. Since the growth and inflation rates in the first half of 2002 were still substantially below their respective averages of 9.4% and 5.5% during the period 1979-2002, it appears that China's economy is still operating below production capacity. However, there are other indications ...