hina is one of the greatest macroeconomic success stories of the current

generation. The People’s Republic of China has in a little less than half a century
moved to arguably be one of the greatest economies in the world. Indeed, some may
even argue that it is the greatest. This, as per the Kindleberger/Minsky model, is
a major cause for worry and not celebration. Indeed, around the year 2015, the
Chinese economy was doing so well that it was attracting an avalanche of investors.
Companies such as Beijing Baofeng Technology Company would have their stocks
appreciating at astronomical levels of up to 10% per day. Money managers and
experts from around the world and even the USA were exhorting investors to buy
Chinese stakes. The government …show more content…

Minsky’s model reflects that it is possible to have an artificial economic boom but
the same is always followed by a massive economic crash. Kindleberger adds the
perspective that it is just before the crash that investors seem most eager to
speculate and have the highest level of confidence. This concept exacerbates the
impact of loses when the inevitable slump finally comes. The Kindleberger/Minsky
model can, therefore, be considered reflective of an indication that when the
economy of a place seems to be doing extremely well and there is no logical
explanation for the same, it would be a bad idea to invest into it because a slump
is imminent and inevitable. This begs the question of whether China could be going
down this ignominious path and what this could mean for its future. The most viable
answer to this question should be an indefinite one. At first, the model as
developed by Kindleberger relies very heavily on the unquantifiable factors of fear
and greed. These are purely human factors thus based on the unpredictability of
human behavior. Indeed, two investors holding a similar stock can decide to dump it
almost at the same time, with one doing so out of fear and the other out of greed.
Two of the colleagues may at the very same time

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The Great Encounter Of China And The West Summary
When the Chinese and Europeans first came into contact with each other, there was a
mutual fascination for the other's culture, or way of life. The Chinese began to
look at the European culture. They became interested in Western thinking. They were
also beginning to look at the religion that the European missionaries were
preaching about, Christianity. On the other end, the Europeans who came in contact
with the Chinese were fascinated by their culture and their philosophy, mainly the
philosophy of Confucius. While the two cultures seemed to be a good match, each
respecting and admiring the other, it came to an abrupt halt. The end result was
China and Europe both rejecting the other culture.

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