Signs of growth – stronger growth – abound. Car sales are up by double-digits in 2012, and 2013 looks even better, perhaps 20 million units? (The US may hit 15 million, sales in the EU are in freefall.) China is the most important market for both GM and VW. Chinese exports are up, suggesting that perhaps the downturn in Europe will be mutedin its global impact by growth in the US and the rest of Asia (I don’t follow Latin America…). And so on.
But is this all good news? What problems does strong growth bring? How should China respond? I don’t want to fill in the details: that’s your challenge in blogging this term. For the time being, we’re focused on microeconomic issues. From your end, potential topics are
- (i) the harbingers of growth, and their reliability (remember that macro statistics are noisy in the short run) and
- (ii) the side effects of growth, micro and macro.