Animal Spirits With Chinese Characterstics

Animal Spirits with Chinese Characteristics is the first detailed account of the investment booms and busts that drive China's business cycles. This exciting new volume looks first at the causes of these fluctuations, then examines the central government's countercyclical policy responses. DeWeaver shows that the volatility of Chinese investment is primarily the result of perverse incentives inherited from the command-economy era. Beijing's most effective countercyclical policies therefore still take the form of ad hoc administrative interventions. Contrary to popular belief, Beijing cannot 'fine tune' the economy. It also stands little chance of transitioning to a less volatile 'mode of growth.'

Mark A. DeWeaver, PhD, manages Quantrarian Asia Hedge, an emerging markets fund he cofounded in 1999. He lived and worked in China from 1985-1994, first as a student at Sun Yatsen University in Guangzhou, later as a research analyst for Peregrine Brokerage (now part of BNP Paribas). He has written for Project Syndicate, Asia Times Online, the Asia Sentinel, and Iraq Business News.