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The end of China’s growth model — Yasheng Huang

From The Boston Globe Stock markets continue to respond strongly to China’s economic woes, fearing a crippling slowdown since China suddenly devalued its currency two weeks ago — a move widely interpreted as a desperate attempt to support growth. But Chinese growth in the future will be limited until the government makes fairly substantive structural reforms. China’s growth model is one in which the role of the state in the economy has become more intrusive. For years, many US observers hailed China’s government-led and investment-heavy model as a pillar of strength. Their favorite comparison is between the spunky new airports in Beijing and Shanghai and the supposedly dilapidated New York JFK and Los Angeles airports. While comparison has an element of convenience to it — you have to depart from a US airport and arrive at a Chinese airport when you visit China — the “airportology’’ is flawed, because it … Read More »The post The end of China’s growth model — Yasheng Huang appeared first on MIT Sloan Experts.  Read the full post >

Keystone Pipeline Foes Should Face Reality — Chris Knittel

From Bloomberg Opponents of the Keystone XL oil pipeline warn of its potentially catastrophic consequences. Building it, climate scientist James Hansen says, would mean “game over” for the climate. New York Times columnist Thomas Friedman hopes that, if it’s given a green light, “Bill McKibben and his 350.org coalition go crazy.” And he means “chain-themselves-to-the-White-House-fence-stop-traffic-at-the-Capitol kind of crazy.” Are they all just crying wolf and using Keystone XL as a proxy battle against oil? I hope so, because the economics behind laying a pipeline from Alberta, Canada, to the U.S. Gulf Coast would make it difficult for the pipeline to have any effect on greenhouse-gas emissions. I trust that if opponents dug a little deeper into the issues and the market for oil, they would agree — at least privately. Three things would need to be true for Keystone to lead to more emissions. Otherwise, the pipeline could actually reduce … Read More »The post Keystone Pipeline Foes Should Face Reality — Chris Knittel appeared first on MIT Sloan Experts.  Read the full post >






 

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