Matthew Klein argues that the IMF underestimates the extent of global imbalances and fails to recognize the damage they do to global demand. @M_C_Klein

Matthew Klein argues that the IMF underestimates the extent of global imbalances and fails to recognize the damage they do do global demand. @M_C_Klein

1/2 Bloomberg: "“The subsidized production does not match the domestic demand in China, and therefore overcapacity produced here goes to other markets,” von der Leyen told reporters later on Thursday."

According to Caixin, Chinese regulators are changing the way they allow China's "unprofitable but high-potential tech companies to go public", in an attempt to end "a desert-like IPO drought".

Yicai: "China’s local governments have doubled their debt in five years and that debt’s sustainability will be tested during the 15th Five-Year Plan period that starts next year, according to the chief economist at Yuekai Securities."

1/2 Yicai: "Chinese automakers are building factories in Brazil to meet rising demand for affordable electric vehicles and to offset growing import tariffs.Since January, Brazil is phasing in import tariffs on...

Xinhua: "In the first half of the year, gold consumption in China was down 3.5% year on year, with the consumption of gold jewelry down 26.0% and the consumption of gold coins and bars up 23.7%."

How economics teaching became the Aeroflot of ideas via @ft

The IMF's latest External Sector Reports notes that "China and the United States present opposite patterns, with China becoming increasingly central in the international trade network but playing only a modest role in the global finance network, while the United States maintained the dominant role in finance rather than in trade."

A discussion of how endogenous flows cause other endogenous flows. ✍️ Michael Pettis @ftopinion 👉On how “a country’s internal imbalance can accommodate its external imbalances.” 🧐”When that happens the accompanying trade deficit is not caused by a surge in investment but rather by a shift in spending from domestic to foreign-produced goods.” 🤷‍♂️