The best way to sustain China's economic transition and prevent a hard landing is to implement looser monetary and credit policies that enable the most productive cities, companies and industries to generate new added value.
Only by addressing the weakening of investment-led growth, bureacratic inefficiencies and worsening pollution, and then shifting to an innovation-based, environmentally sustainable growth model, can China continue to prosper and ultimately achieve high-income status.
A generation of development economists owe Ronald McKinnon, who died earlier this month, a huge intellectual debt for his insight that governments like the U.S. that engage in free-market rhetoric to channel funds toward themselves hamper financial development.
As property prices have risen faster than wages and profits in manufacturing, China's top 1 percent income earners are accumulating wealth significantly faster than their counterparts in the rest of the world — and far faster than the average Chinese.
This year's China Development Forum in Beijing revealed the clearest vision yet of how China's leaders intend to deliver the "Chinese Dream" of improving people's livelihoods, constructing a better society and strengthening the military.
The growth of credit in China at a breakneck pace, including the spike in local-government debt by 70 percent since 2009, is raising serious concerns about the level of risk in China's financial system.