Graph 10  It is worth noting, however, that compared with many cases of heavily indebted emerging economies that have faced financial problems in the past, China’s debt is largely domestic. A considerable portion of that has arisen from state-owned or controlled financial institutions lending to state-owned or state-controlled enterprises, which to some extent allows the problem to be handled within the official “family”.
All of us are proud of the speed and coordination with which the Eurozone responded to the recent pandemic, not least because it was perceived as a symmetric, external shock. Few of us would be proud of the way the fallout from the Great Financial Crisis was addressed in the Eurozone, not least since its impact was asymmetric and conditioned by internal factors.