Nomura Research Institute chief economist Richard Koo is well-known for his “balance sheet recession” interpretation of Japan’s economic downfall in the 1990s. In his second Open Questions interview, Koo assesses the risks the Chinese economy is facing this year and beyond, the many parallels between Beijing and Tokyo, and why market size and technology alone may not be enough to help avert a fate similar to Japan’s.Koo also explains why giving China’s consumers money will not help and why...