April 2012

Presented by Dr.Lim Mah-Hui
On October 19, 2011
At PwC Seminar, Penang

Dr. Lim was invited to share his views regarding the U.S. and European Debt Crises at PWC, Penang. To download his powerpoint slides, please click here.

Presented by Dr Lim Mah-Hui (Michael)
On February 2-3, 2012
At South Centre Conference, Geneva
Dr. Lim was invited to give his view on the ‘State of the Global Economy, and Reflections on Recent Multilateral Negotiations’. To download his powerpoint slides, please click here.

Presented by Dr Lim Mah-Hui (Michael)
On March 27, 2012
At Taiwan Brain Trust, Taipei

Dr. Lim was invited to give a talk at the Taiwan Brain Trust in Taipei. To view his powerpoint slides, please click here.


Despite robust growth, rising inequality is widespread in many countries. At the same time, financial instability and crises are occurring with greater frequency and severity. These two phenomena are related to the contest between labour and capital for a greater share of economic output, with capital gaining a greater share over the past few decades. As a result, there is a tendency towards a decline in consumption by the average household and a rise in savings by a rich minority which could cause stagnation in the economy.

This tension between declining consumption and rising savings is ‘resolved’ by the financial system through the recycling of funds from the rich minority to the average household in the form of credit. Financial engineering in the USA exacerbated this process which led to excessive lending and borrowing, and the creation of an unsustainable debt and asset bubble that eventually imploded. There is a similar tendency towards greater inequality, a falling share of consumption and a rising share of savings and investment in China. In the context of a globalized economy, the tension is ‘resolved’ through recycling ‘excess savings’ from China to the US, adding to the debt and asset bubble in the US.

To read the whole article, please click here.