Emerging Markets: China should have increased consumption and Brazil investment - - not the reverse
Aug 19th, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Deutsche Bank Research economist Markus Jaeger says Brazil should have increased public investment, while China should have boosted domestic consumption in response to the economic crisis. Morgan Stanley's veteran economist Stephen Roach who is now chairman of MS Asia, says while developing nations always need more infrastructure, China has taken this recipe to an extreme. Infrastructure expenditures (including Sichuan earthquake reconstruction) account for fully 72 per cent of China’s recently enacted Rmb4,000bn ($585bn) stimulus.