The existence of economic slack or inefficiency is a common phenomenon of economies that operate under mandatory central planning. It implies that the economy operates in the interior of its set of production possibilities and not on its frontier. It also implies that output can be increased...

Pareto-improving economic reforms that also simultaneously achieve efficiency can be implemented through a strategy of "dual-track" liberalization. Its success requires the feasibility of the original plan and its continued enforcement by the state. The Chinese experience demonstrates that such...

The Chinese economy is in the midst of a process of transition to a “New Normal”, with slower growth of real GDP, international trade and investment. China has a very high domestic saving rate and hence significant excess savings. Its outbound direct investment has surpassed its inbound...