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China in Search of Equilibrium – Transition Dilemmas of Growth and Stability

Author

Listed:
  • Laura Komlóssy

    (Magyar Nemzeti Bank)

  • Gyöngyi Vargáné Körmendi

    (Magyar Nemzeti Bank)

Abstract

China’s economic growth and stability are key not only to the population of China: due to its size and trade relations, it would affect all actors of the global economy to a lesser or greater degree if unexpected events or strong deviations occurred in the world’s second largest economy. As major imbalances and risks have accumulated in the Chinese economy in recent years, the professional community is still divided on the question of whether the central government will succeed in soft landing and set the economy on a more balanced and sustainable growth path, or whether an abrupt adjustment is already unavoidable, and it is only the time and severity of the consequences of an economic decline that are questionable. In this essay, we present the policies that ensure sustainable growth, the risks that complicate implementation and the economic policy measures aiming to mitigate such risks.

Suggested Citation

  • Laura Komlóssy & Gyöngyi Vargáné Körmendi, 2019. "China in Search of Equilibrium – Transition Dilemmas of Growth and Stability," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 18(3), pages 114-134.
    • Handle: RePEc:mnb:finrev:v:18:y:2019:i:3:p:114-134
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    References listed on IDEAS

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    More about this item

    Keywords

    China; new macroeconomic equilibrium; stability risks; soft landing;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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