Andy Xie

Andy Xie

Dr Andy Xie is a Shanghai-based independent economist specialising in China and Asia, and writes, speaks and consults on global economics and financial markets. He joined Morgan Stanley in 1997 and wa

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The coronavirus may have invited the next global financial crisis
The US Federal Reserve has just cut interest rates by half a percentage point and the Reserve Bank of Australia by a quarter of a percentage point, while some expect the European Central Bank, with interest rates already at zero, to directly fund small and medium-sized enterprises. These central banks are acting like they can save the world, but markets are unconvinced. It seems that the central banks, after playing markets like maestros with quantitative easing and extremely low-interest rates, have finally met their match in Covid-19. Central bank moves are sustaining the largest financial bubble in human history. After 2008, these banks helped the global economy recover by jacking up asse
Outbreak brings out the awesome power of China’s model – and its devastating ills
China is effectively in a lockdown. From big cities to little villages, almost every community is under quarantine to a varying degree, or at least faces some travel restrictions.  There is little information on how long this will last. One thing for sure is that the government is willing to keep the country in lockdown until the virus outbreak comes under control. A government mobilization on this scale is unprecedented. This shows the awesome power of the China model. With government power at the center of everything, it can mould society in a way not possible in any other large or even mid-sized country. It has grass-roots party cells to implement quarantine policies in every urban compou
Saving Hong Kong: Start by ending collusion with tycoons
Hong Kong must reform its economic policy to restore social calm. While political issues are important and should be addressed, economics is critical to any lasting peace. The essence of Hong Kong’s current economic policy, which is billed as a laissez-faire nirvana, is a regressive tax in the form of high land prices. It strangles the middle class. When economic growth is fast, it obscures the negative impact of the policy. But prolonged slow growth exposes the corrosive effect the policy has on wealth equality and labor income. As young people’s aspirations are extinguished, a social explosion is inevitable. Chief Executive Carrie Lam’s policy address, while delivered under difficult circu