Interpreting China: Keynes vs. Austrians

China is confronting some serious economic problems, and how Beijing does â?? or doesnâ??t â?? respond to them could bend the course of the global economy.

First, Chinaâ??s real estate bubble is deflating. But its economy also seems to be suffering from what we economists call excess capacity â?? an overinvestment in capital goods, whether in factories, retail stores or infrastructure.

So what now? The answer depends in part on your school of economic thinking

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