Here’s a scary thought: What if the economies of China and India — the world’s two major growth engines — slowed suddenly and dramatically?
Is the world prepared for such an event? How far would the collateral damage extend? Perhaps most importantly, what are the chances of a crash in Asia?
According to Larry Summers and Lant Pritchett, these are questions that policymakers should be thinking about — and the all-star economists have produced some new research that warns of danger ahead. Their argument goes like this: China and India are in the midst of sustained periods of economic growth that are exceptional in both their pace and duration. At some point, this will end.
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