Of course, you know scientists hate the idea of empirical proof, but this is quite strongly suggestive. Yes, quite strongly.
Andrew Baston reports on China’s 7.9% GDP growth in the second quarter:
China’s government only reports year-on-year growth estimates. But when measured in the same terms as other major economies—an annualized quarter-on-quarter comparison—China’s growth in the second quarter could be on the order of 15%, some private economists estimate.
This is proof, I think, that stimulus programs can have spectacular effects, at least in the short term. Although once again
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Thursday ~ July 16th, 2009 at 8:46 pm
teageegeepea
Bob Murphy sees it as evidence that deflation isn’t such a bad thing. I don’t think his argument would count against Scott Sumner’s rule that you should inflate enough that real NGDP growth is positive (actually, 5 percent, but whatever).
It is noted that China had “aggressively loose fiscal and monetary policies”. In the U.S “stimulus” tends to refer to fiscal policy. How do we know it was due to their fiscal rather than monetary policies?
Friday ~ July 17th, 2009 at 2:45 pm
TGGP
More relevant to your post, Bob has another where he notes that the Chinese deficit for 2009 is actually projected to be SMALLER than that of the U.S.