Thursday, April 7, 2011
OPINION: China's Bubble Economy - Vikram Mansharamani
Asia Sentinel, 7 Apr 2011From a microeconomic perspective, one method of identifying an asset-price bubble is to spot self-fulfilling or reflexive dynamics underway. In China today, higher prices in many of its asset markets are generating demand more rapidly than supply. Such dynamics are rarely stable and create situations prone to rapid corrections.Consider property markets in which