Krugman: Beijing unwilling to boost demand


Nobel laureate in economics Paul Krugman. — Bloomberg

HONG KONG: China’s leaders are “bizarrely unwilling” to use more government spending to support consumer demand instead of production, according to Nobel laureate in economics Paul Krugman.

“The fact that we seem to have a complete lack of realism on the part of the Chinese is a threat to all of us,” Krugman told Bloomberg TV’s Shery Ahn and Haidi Stroud-Watts in an interview in which he also touched on Japan’s economy and the benefits of a weak yen.

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