and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts … rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms and financial …

Intro -- Contents -- I. INTRODUCTION -- II. CONSUMPTION, INVESTMENT, AND SAVINGS IN CHINA -- III. THE CHINESE ECONOMY …. INTRODUCING INVESTMENT WEDGE -- VII. FINANCIAL FRICTIONS AS INVESTMENT WEDGES -- VIII. CONCLUSIONS -- REFERENCES. …

and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts … China is to rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms …

government spending consists of both consumption and investment goods. It is shown that when markups are countercyclical …, increases in the share of investment goods in aggregate government expenditure entail a trade-off between greater long- run …