Willem Buiter: Little Systemic Risk from a Financial Crash

(Beijing) – Many economists have said that today's China shares many similarities with Japan in the late 1980s because both rely heavily on exports and cheap labor to back growth, and both suffered asset bubbles caused by post-crisis stimulus and a fragile banking system. Some have warned that China is likely to follow Japan, entering a decade of long deflation and depression like Japan did in the 1990s.