An imaginary conversation with Fan Li
“That is why I like Chinese and Market Economics. Chinese Economics is taught like Geography. In a Geography class you learn the names of countries. The name is never in dispute or requires a proof. Names are facts. The location of cities, the length of rivers, the height of mountains, and the depth of lakes are all facts. The price of Barbie dolls, the amount of milk fat in a dairy product, the make of new cars sold at the local dealership, the weight of a sack of flour are all facts. The western economic approach is composed of equations and concepts: supply and demand, velocity of money, natural rate of unemployment, monopoly, Income Elasticity of Demand, equity, assets, returns, etc. All these concepts are subject to interpretation,” Fan Li explained.