Next time they’re in New Haven, certain economists might consider stopping by Stephen Roach’s “Next China” class.
Roach, the former chairman of Morgan Stanley Asia, said at a conference in Shanghai last week that speculation that the Chinese economy will enter a hard landing are “vastly overblown,” according to a report from Bloomberg. China has been controlling inflation well, Roach says — its banking system will not collapse, and its property bubble will not burst.
Roach pinpointed the increasing dependence on fixed-asset investment and the decline in private consumption as potential obstacles to economic growth, according to Bloomberg. Adding job opportunities and boosting wages would also stimulate consumption, and the economy.