Please join us Friday, April 20th, at 3 p.m. in the Hatfield Room for our eleventh Faculty Colloquium of this semester.
Title: “Minsky in Beijing: Shadow Banking, Credit Expansion and Debt Accumulation in China”
Abstract: China has undergone two salient developments in its financial landscape since the 2007 Global Financial Crisis. First, there has been a repaid and massive growth of “shadow banks” that played an increasingly weighty role in credit creation. And second, debt level, especially in the corporate sector, has risen significantly to reach an alarming level. The two changes have led some commentators to claim that China is soon to experience a “Minsky Moment”, where a sudden unwinding of debt would trigger destructive debt deflation. This paper analyzes China’s debt issue – the causes, patterns and possible consequences. Based on the analysis, the paper provides a critical assessment of the current policy measures in dealing with rebalancing and deleveraging and proposes some alternative policy actions. Students are welcome and coffee and treats will be provided. We look forward to seeing you there.
Ellen Eisenberg and Bill Kelm
Faculty Colloquium Coordinators