In case you missed our recent public event with University of Paris VIII economics professor Kostas Vergopoulos and moderator and GPIA Director Michael Cohen, not to worry. Professor Vergopoulos’ talk focused on China as a major economic power in the international community and the future of global stability.
His central argument was that China has a huge savings surplus, but with minimal foreign direct investment (FDI) and limited domestic consumption, thus leading to what he called a “sterilization” of global currency. In other words, by withdrawing money from the global economy and not putting it back into circulation through investing abroad, China is contributing to further economic stagnation, even while this would seem to be harming China in the process–for example by not re-valuating its currency in relation to the dollar.
You can listen to the audio of the full talk and discussion following the event below.
[audio:http://indiachinainstitute.org/audio/Kostas%20Vergopoulos%20-%20China%20and%20Global%20Crisis%20Talk%20(10.18.2013).mp3]