hyperinflation in centrally-planned economies: the Chinese exception

Louis R Godena louisgodena at ids.net
Fri Oct 11 16:25:54 MDT 1996


Barkley has the temerity to say:

> Your numbers on Chinese investment are all wet.

My numbers are fine.    It is you who are full of shit.

>I think that you have lumped the centrally owned SOEs with
>the TVEs, or something like that.  The centrally owned SOEs
>have produced substantially less than half the PRC GDP
>since the early 1990s, a percentage that continues to fall
>as that sector has been allowed to stagnate relative to the
>others.

Re-read my post,  dick-head.    Most of the non-SOEs ARE Town and Village
Enterprises (TVEs).   And the SOEs have not,  as a rule,  been allowed to
stagnate.    They get most of the investment income,  yet the increase in
the real output of SOEs was only a FIFTH of the total industrial expansion
between 1989 and 1993,  when the compound annual growth in SOE output 7.4
per cent,  against 31 per cent in non-SOEs.

I have numerous sources on this, although one for
>starters is Barry Naughton, "Chinese Institutional
>Innovation and Privatization from Below," _American
>Economic Review Papers and Proceedings_, May 1994.

Barkley,  you can read.    Fine.   It won;t do you any good,  because you
don't know how to read figures,  and you did a piss-poor job of reading my
post,  to boot.

> The double-digit inflation rates in the PRC are better
>than what has happened in many transitional economies, but
>its performance is hardly the best there is out there on
>that front.  Where it has done much better has been in
>avoiding a decline in output, indeed has had a very rapidly
>growing economy, although disguised unemployment and
>growing income inequalities are emerging.

My post did not address that.    I quibble with the term "transition
economy".    The Chinese call it a "planned commodity economy" as opposed to
a centrally controlled market economy.    This issue of course needs further
exploration.     How about some figures on unemployment and income
inequalities from your precious Barry Naughton?

Remember,  don't fuck 'em up.


Louis Godena




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