Emerging Markets In Chronic External Debt, Imbalance Of Labor

While the U.S. and much of Europe continue to rebound from years of slow growth, emerging markets are slowing and many analysts still think China has a hard landing in its future. There’s no consensus on what is causing the slowdown. According to Natixis economist Patrick Artus there isn’t one factor affecting all of these countries, but they are all undergoing economic transition and failing to coordinate the change in different ways. He argues that they need “to be capable of organizing a parallel rise in wages, product sophistication, education level, infrastructure, and the capacity to use savings,” and none of them has managed to bring all four factors together. Until they do, they...