Paul Krugman: China’s Stock Market Crash Could Lead to Economic Collapse
Despite spectacular growth over the last 25 years, the Chinese economy may be headed for an economic collapse after the government’s inept handling of a stock market crash. The Shanghai Composite Index fell by nearly 30% since June 12th, a decline precipitated by regulatory changes in China’s financial sector.
The Chinese government’s actions have drawn the ire of Paul Krugman, a Nobel Prize-winning economist who also writes for The New York Times. According to the famous professor, too many analysts wrongfully attribute the success of China’s economy to its leaders.
“The big news here isn’t about the Chinese economy; it’s about China’s leaders,” writes Krugman. “Forget everything you’ve heard about their brilliance and foresightedness […] they have no clue what they’re doing.” (Source: The New York Times, July 31, 2015.)
Continue Reading >> Paul Krugman: China’s Stock Market Crash Could Lead to Economic Collapse
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