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China’s slowdown: When the dragon catches the flu, Europe sneezes

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  • Barslund, Mikkel
  • Alcidi, Cinzia

Abstract

Notwithstanding the erratic stock market responses around the world, this CEPS Commentary argues that while a slowdown of the world’s second-largest economy may not be good news for Europe, its effects will not be as bad as headlines would have us believe. In the short term, it finds that the biggest risks from the Chinese slowdown may be political, stemming from a weakening of the Renminbi, either from actions taken by China’s central bank and/or from large capital outflows.

Suggested Citation

  • Barslund, Mikkel & Alcidi, Cinzia, 2015. "China’s slowdown: When the dragon catches the flu, Europe sneezes," CEPS Papers 10960, Centre for European Policy Studies.
    • Handle: RePEc:eps:cepswp:10960
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    File URL: https://www.ceps.eu/system/files/MB%2BCA%20ChinaSlowdown.pdf
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    References listed on IDEAS

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    1. Aasim M. Husain & Rabah Arezki & Peter Breuer & Vikram Haksar & Thomas Helbling & Paulo A Medas & Martin Sommer, 2015. "Global Implications of Lower Oil Prices," IMF Staff Discussion Notes 15/15, International Monetary Fund.
    2. Gros, Daniel, 2015. "Monetary policy and the over-investment cycle: China as an extreme case," CEPS Papers 10861, Centre for European Policy Studies.
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