That China’s growth is unbalanced is a fact. Consumption as a share of GDP has declined steadily over the past decade to 35 per cent, while investment as a share of GDP has risen to above 45 per cent — the lowest and the highest rates of any major economy respectively. But are these imbalances a vulnerability — as most observers believe — or a consequence of China’s economic rise, and therefore not inherently problematic?

That China’s growth is unbalanced is a fact. Consumption as a share of GDP has declined steadily over the past decade to 35 per cent, while investment as a share of GDP has risen to above 45 per cent — the lowest and the highest rates of any major economy respectively. But are these imbalances a vulnerability — as most observers believe — or a consequence of China’s economic rise, and therefore not inherently problematic?

Abenomics is Japanese Prime Minister Abe’s policy package consisting of three ‘arrows’: aggressive monetary easing, flexible fiscal policy, and growth strategies. Together, they are aimed at lifting Japan’s economy from chronic deflation and stagnation to a normal economy with 2 per cent inflation and strong growth. But will they succeed?

Abenomics is Japanese Prime Minister Abe’s policy package consisting of three ‘arrows’: aggressive monetary easing, flexible fiscal policy, and growth strategies. Together, they are aimed at lifting Japan’s economy from chronic deflation and stagnation to a normal economy with 2 per cent inflation and strong growth. But will they succeed?

Indonesia came out of the 2008–09 global financial crisis fairly unscathed; its banks only had to deleverage themselves from a small portion of debt. But now its strong position is in danger: government meddling could cause a good economy to go bad. The government should eschew populism and fix Indonesia’s structural issues, including burgeoning fiscal subsidies and inward-looking trade policies, which pose a big threat to the country’s financial and monetary stability.

Indonesia came out of the 2008–09 global financial crisis fairly unscathed; its banks only had to deleverage themselves from a small portion of debt. But now its strong position is in danger: government meddling could cause a good economy to go bad. The government should eschew populism and fix Indonesia’s structural issues, including burgeoning fiscal subsidies and inward-looking trade policies, which pose a big threat to the country’s financial and monetary stability.

Since taking office in mid-March, the Li Keqiang government has taken a different policy path from that of its predecessor. Its key economic policy framework, although yet to be fully detailed, can be summarised as ‘Likonomics’, and appears to consist of three key pillars — no stimulus, deleveraging and structural reform. If so, this implies further downside risks for the economy and markets in the near term. But such policy measures are necessary now for China in order to avoid much more disruptive outcomes in the future.

Since taking office in mid-March, the Li Keqiang government has taken a different policy path from that of its predecessor. Its key economic policy framework, although yet to be fully detailed, can be summarised as ‘Likonomics’, and appears to consist of three key pillars — no stimulus, deleveraging and structural reform. If so, this implies further downside risks for the economy and markets in the near term. But such policy measures are necessary now for China in order to avoid much more disruptive outcomes in the future.

It is almost certain that the 21st century is the Asian century in terms of real side of the economy—ouput, trade, consumption, and investment. What is not certain is how Asia will integrate financially and what will happen to Asian currencies, especially the Chinese renminbi (RMB) which could become the default international currency in Asia.

It is almost certain that the 21st century is the Asian century in terms of real side of the economy—ouput, trade, consumption, and investment. What is not certain is how Asia will integrate financially and what will happen to Asian currencies, especially the Chinese renminbi (RMB) which could become the default international currency in Asia.