Michael Pettis

American economist

Michael Pettis

Born|  (1958-06-16) 16 June 1958 (age 65)

Zaragoza, Spain

Nationality| American
Occupation(s)| Professor of Finance, Peking University
Academic background
Alma mater| Columbia University
Academic work
Era| 20th & 21st century
Institutions| Peking University
Main interests| World Economy, Trade, China
Notable works| The Great Rebalancing
Trade Wars Are Class Wars
Website| carnegieendowment.org/chinafinancialmarkets/

Michael Pettis (born June 16, 1958) is an American professor of finance at Guanghua School of Management at Peking University in Beijing and a nonresident senior fellow at the Carnegie Endowment for International Peace. He was founder and co-owner of punk-rock nightclub D22 in Beijing, which closed in January 2012.[1]

Pettis is a speaker and writer on global economic growth, having published two books on the subject. In 2013, Princeton University Press published his second book, The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy.[2][3]

## Biography[edit]

### Early life and education[edit]

Pettis was born in Zaragoza, Spain to a French mother and an American father. His father was a geologist and civil engineer. He spent his childhood in Peru, Pakistan, Morocco and Haiti, before returning to Spain for High School. Pettis entered Columbia University in 1976.[4] He received a Masters of International Affairs (emphasis in Economic Development) in 1981 and a Masters of Business Administration in Finance in 1984, both from Columbia University.[5][6]

### Career[edit]

Pettis began his career in 1987, joining Manufacturers Hanover (now JPMorgan Chase) as a trader in the Sovereign Debt group. From 1996 to 2001, he was at Bear Stearns as a managing director-principal in Latin American capital markets. Pettis also served as an advisor to sovereign governments on topics regarding financial management; including the governments of Mexico, North Macedonia and South Korea.[7]

Pettis is a frequent guest as an economic expert, with media appearances on news stations including CNBC, NPR, Bloomberg Radio and BBC.[8]

### Projects[edit]

In April 2006, Pettis opened D22, a nightclub he founded and co-owned. In 2007, he founded the label Maybe Mars around the club. D22 closed January 2012; the reasons for closure included the venue no longer being suitable for some events and high forthcoming maintenance costs. Pettis's intention was to open another club.[1]

## Writings[edit]

### Chinese economic investment[edit]

Pettis has long warned that heavy investment by China into infrastructure projects, at the expense of consumption, is cause for serious concern.[9] The banking sector in particular, the source of cheap loans for large infrastructure projects, has accumulated large debts both on and off balance sheet. There are only two methods by which investment, which is estimated at almost 50% of China's GDP, would decline to a level more consistent with other Asian economies. China can either deliberately de-incentivize investment spending, at the near-term cost of slowing economic growth, or investment can continue to rise as a share of GDP until the financial system cannot absorb further increases to debt, and a financial contraction will ensue.[10]

## Publications[edit]

* The Volatility Machine: Emerging Economics and the Threat of Financial Collapse, Oxford: Oxford University Press, May 2001.[11]
* The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy, Princeton: Princeton University Press, January 2013.[12]
* Avoiding the Fall: China's Economic Restructuring, Washington: Carnegie Endowment for International Peace, September 2013.[13]
* Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace with Matthew C. Klein, New Haven: Yale University Press, May 2020.[14]

## References[edit]

1. ^ a b "D22 Closing: Full Interview with founder Michael Pettis".
2. ^ Pettis, Michael (22 January 2013). The Great Rebalancing. ISBN 9780691158686.
3. ^ Michael Pettis (26 October 2014). The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy - Updated Edition. Princeton University Press. ISBN 978-1-4008-5226-0.
4. ^ Roberts, Dexter. "Michael Pettis: Rocking Chinese Finance". Archived from the original on 10 April 2013.
5. ^ "Economics | by Invitation". The Economist.
6. ^ Yumpu.com. "SIPA Reaches Out Around the World - School of International and ..." yumpu.com. Retrieved 21 December 2022.
7. ^ "Carnegie Endowment Biography".
8. ^ "Carnegie Endowment Biography".
9. ^ "Financial instability in China". Archived from the original on 11 April 2013. Retrieved 10 March 2013.
10. ^ "The IMF on overinvestment". Archived from the original on 4 March 2013. Retrieved 10 March 2013.
11. ^ Pettis, Michael (7 June 2001). The Volatility Machine: Emerging Economies and the Threat of Financial Collapse. Oxford, New York: Oxford University Press. ISBN 978-0-19-514330-0.
12. ^ Pettis, Michael (22 January 2013). The Great Rebalancing. ISBN 978-0-691-15868-6.
13. ^ Pettis, Michael. "Avoiding the Fall: China's Economic Restructuring". Carnegie Endowment for International Peace. Retrieved 10 June 2020.
14. ^ "Trade Wars Are Class Wars | Yale University Press". yalebooks.yale.edu. Retrieved 10 June 2020.

## External links[edit]

* Michael Pettis own website, China Financial Markets, now hosted at Carnegie
* Michael Pettis speech from August 2011, "How Long Can China Grow?"
* Economist magazine bets professor over China's future
* Review of The Great Rebalancing
* "Michael Pettis". JSTOR.

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