Renowned Shanghai-based economist Dr Andy Xie was interviewed for an article at The Korea Times. Dr Andy Xie shared his insights and emphasized that South Korea needs to overhaul its debt strategy and focus on decreasing the cost of living.
“Household debt (in Korea) is high and rising faster than income,” independent economist Andy Xie told The Korea Times.“Household debt shows that there is insufficient income to cover living costs,” he added. “This is very similar to the situation in the U.S. before 2008.”
Korea in Xie’s view has been facing a similar situation (as the US 2008 crisis) in two aspects — poor wealth distribution and low borrowing costs.
“Some corporate successes don’t translate into sufficient income growth, especially to catch up with the increasing costs in housing and education,” he said.
“The low interest rate and loose lending policy are enticing people into debt to keep up. But, as income continues to fall behind, the high and rising debt load is depressing people.”
Check out all of Dr Andy Xie’s important points and read the rest of the article here.
Dr Andy Xie 謝國忠 is a renowned Chinese economist based in Shanghai who has been named one of the “50 Most Influential Persons in Finance” by Bloomberg.
Dr Xie’s skill and has been tried and tested through the years. He is one of the few economists who has accurately predicted economic bubbles including the 1997 Asian Financial Crisis and the more recent subprime meltdown in the United States.
He joined Morgan Stanley in 1997 and was Managing Director and Head of the firm’s Asia/Pacific economics team until 2006. Before that, Dr Xie spent two years with Macquarie Bank in Singapore an associate director in corporate finance and five years as an economist with the World Bank. Dr Andy Xie is currently a director of Rosetta Stone Advisors.
Dr Xie earned a PhD in economics in 1990 and an MS in civil engineering in 1987 from the Massachusetts Institute of Technology.