Harvard Study: Here's Why The Chinese Economy Can't Defy The Odds Forever

THE announcement this week that China's economy had grown by 7.3% in the third quarter year-on-year was widely seen as marking the country's "new normal" of slower growth. It was well below the roughly 10% pace China had averaged from 1980 until two years ago. Yet according to a new working paper by Lant Pritchett and Larry Summers of Harvard University, it is still abnormal: Chinese growth is likely to be lower still in future. Forecasters often extrapolate from recent growth rates, the authors...