Saturday, January 30, 2016

FLIGHT OF CAPITAL FROM CHINA.

The biggest problem for China now is perception.The
perception is made worse in China by the government's
opacity and the economy's difficult transition from
reliance  on big infrastructure & exports to consumer
spending.

"Capital flight is driven by nervousness and lack of
confidence" says, Dev Kar,Chief Economist at Global
Financial Integrity and a former International Monetary
Fund official who tracks money flows.

Source: Wall Street Journal & Global Financial Integrity.

Is there a lesson for India to learn?.Don't create more
capacity building & mega infrastructure projects at a
speed more than what our economy can absorb.

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