An Utopian dream on Newsweek(via here), the third point especially was hilarious...:
"Third, advanced and emerging economies that are running chronic surpluses must get rid of them. The policies needed to do so vary by country and involve structural shifts. In the case of China, a key part of its 12th five-year plan is to shift income to the household sector, where the savings rate is high but still lower than the corporate rate. The economy can then use household savings to finance corporate and government investment, rather than the U.S. government. That structural shift, in combination with the renminbi’s strengthening relative to the dollar, offers hope that China’s surplus will fall."
"Third, advanced and emerging economies that are running chronic surpluses must get rid of them. The policies needed to do so vary by country and involve structural shifts. In the case of China, a key part of its 12th five-year plan is to shift income to the household sector, where the savings rate is high but still lower than the corporate rate. The economy can then use household savings to finance corporate and government investment, rather than the U.S. government. That structural shift, in combination with the renminbi’s strengthening relative to the dollar, offers hope that China’s surplus will fall."
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