China and Brazil Part 2: Our version of rebalancing

It seems that the kind of rebalancing that we will see is going to be political rather than the consensual economic kind favoured by developed nations.

China’s stimulus: sustaining growth over safety nets

Howard Davies, former Chairman of the Financial Services  Authority, current Director of the London School of Economics spoke at the LSE last night about where China was up to with its financial reform (download slides here). Davies, a member of the advisory boards of the China Banking Regulatory Commission (since 2003) and the China Securities Regulatory Commission, is ideally placed to talk about reform and the impact of the stimulus.

Davies main tenet: The crisis has meant that China will reform its financial system in its own way and at its own speed. Additionally, the crisis has not derailed the party’s development policies so don’t expect much dramatic change in the model for now.