ates of return on bank savings have been kept low, thereby increasing the ability to do projects.РChinese Modern Economic HistoryРThe result has been the physical China that we all see now. But if that physical China is making less and less of a contribution to GDP, then it is time to increase the consumption portion, the C, in GDP.РCurrent share of consumption in Chinese GDP is about 34%, a very low figure by historical standards in China and parison with other countries, in Asia and not.РIf the return to bank savings were increased, many current Chinese investment projects might be unprofitable.РBut households would begin to see a greater value in their savings.РRemember the wealth effect of savings? If people see that they are making a greater return on their savings, they feel a little
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