By Michael Pettis (Guest Post)
I have been arguing for a while that as long as the Chinese government retains its capacity to raise debt we are not going to see a sharp slowdown in economic growth – at least until 2013. Any indication that the economy is slowing too quickly will be met with a relaxation of credit controls, and the concomitant rise in investment will spur growth. On July 13, under the heading “National Economy Maintained Steady and Fast Growthâ€, the National Bureau of Statistics released more data on China’s economy. According to the preliminary estimation, the gross…
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