Has China entered a balance sheet recession?

Richard C. Koo coined the expression “balance sheet recession”—when individuals and companies focus on restoring their solvency, with detrimental effects on the overall economy—in the context of Japan's "lost decade" of the 1990s. Is it an apt template for what is unfolding now in China? Joining this episode of Financial Statements are: HOST Nicolas VéronSenior Fellow, Peterson Institute for International Economics (PIIE)GUESTS Richard C. Koo Chief Economist, Nomura Research Institute Guo Kai Se