With strong balance sheets and growing domestic resilience, they have the unusual historic ability to act counter-cyclically to stimulate internal demand and, thereby, insulate their populations from the West's malaise while allowing for a more orderly global rebalancing.
He argues that corruption in China has a much more "deleterious effect" than on other countries So, China can't achieve an 'orderly rebalancing' in which growth merely slows.
When grievous harm happens, a rebalancing is bound to occur, whether it is orderly and lawful or disorderly and unlawful.
Apart from stricter budget discipline and surveillance, the compromise should involve a procedure for managing an orderly default in a euro-zone country, and a method for rebalancing the overall European economy between surplus and deficit countries.
While these policy moves are likely to cause violent swings in prices for risk assets, it could accelerate global rebalancing, allowing growth to stabilize while buying more time for an orderly restructuring of global debts.
But economists say China needs to slow down as it changes and rebalances its economy - and the government needs to manage growth expectations to keep this transition orderly.
