I gave the following lecture to students on the International Finance course at the London Business School on 3 June.
(Biggest movie of 2016)
Let me start with a question. Which movie has made the most money this year in any one country? No, it’s not Captain America: Civil War, it is actually Mei ren yu (The Mermaid). It has so far made $530m in China. This compares to Captain America’s $380m in the US. The reason for highlighting this is to show how big the Chinese economy has become. At over $11trn it is the second-largest economy in the world after the US ($17.8trn) and more than the double next-placed Japan ($4.7trn). Back in 2007 before the financial crisis, China was only a quarter the size of the US, rather than two-thirds the size and it was smaller than Japan. Continue reading “Mermaid Spotted – The Rise of China and Secular Stagnation”