Rebirth: My 80s

Friedman had previously questioned Li Jiankun whether he had ever studied macroeconomics.

As a result, Li Jiankun explained his point of view on the economic reform in West Germany in 1948, leaving Friedman speechless.

How can this be a lack of understanding of macroeconomics?

Although some people at the scene could not judge whether what Li Jiankun said was right or wrong, Friedman's expression at the moment had already told them the answer.

Li Jiankun's understanding and research of macroeconomics is even deeper and more thorough than that of Nobel Prize winner in Economics Friedman!

Many people were secretly shocked.

For example, Xiao Dong behind Li Jiankun and Friedman.

Xiao Dong had heard of the name Li Jiankun for some time, but at that time it was too far away from her. It was not until the preparation for today's exchange meeting that her leader told her that she would be responsible for receiving Li Jiankun and serving as his liaison.

Xiao Dong suddenly started to realize what was happening and felt it was unbelievable.

The world's richest man at the age of 28?

The leader also gave her a document to prove that what was disclosed in the newspaper was correct and that he started from scratch.

How did you do it?

This is a question that not only arouses Xiao Dong's strong interest, but also makes her most puzzled.

At this moment, Xiao Dong realized that he might have found a hint of the answer.

Although Li Jiankun is young, he is undoubtedly a genius with extensive experience and profound knowledge. His achievements in the field of economics can be said to have reached the pinnacle.

Not everyone in the field of economics has the courage to mock Nobel economists.

I have never heard of anyone who could mock a Nobel economist and then leave him speechless.

Xiao Dong looked at the broad figure in front of him, little stars sparkling in his big eyes.

The researcher who served as the host pondered and said, "Comrade Jiankun is right. Although the economic problems we are facing are similar to those of West Germany back then, the backgrounds and foundations of the two are completely different."

It must be admitted that the RMB is not currently popular internationally.

A simple fact can illustrate this:

In recent years, we have been vigorously developing light industry, and major factories across the country have made every effort to obtain foreign exchange quotas to import production equipment.

If the RMB were like the Mark back then.

Why should it be so?

If the international community does not recognize the RMB, it will cause a very serious problem - lack of confidence in the RMB.

From this, another question that makes people think carefully is very scary:

If we adopt shock therapy and follow the example of West Germany in the past and fully relax price controls, due to insufficient confidence in the RMB, everyone will feel that the RMB is not valuable and only commodities are valuable.

Then, the behavior of hoarding goods may never end.

The consequences could be disastrous!

Many people at the scene realized this problem at this moment and were all shocked and broke out in cold sweats.

Another researcher asked, “What about Bolivia’s success story?”

When he said this, he looked at Li Jiankun and used a tone of inquiry.

“It’s not the same thing at all.”

Li Jiankun responded: "Don't lump all economic problems together as soon as they arise."

Next to him, Friedman's old face turned redder.

"That in Bolivia is called an economic crisis. What caused it?"

Li Jiankun answered his own question: "The country's political situation has been unstable for a long time, and its economic policies have been constantly wrong. The economic problems caused by this have accumulated in large numbers and have not been solved, which eventually led to a serious economic crisis."

Li Jiankun scanned the audience and asked:

"Are they even remotely similar to us?"

He continued:

"The most notable feature of Bolivia's economic crisis is that in 485.9, the Bolivian government's budget deficit reached 24000 trillion pesos, accounting for about one-third of the country's GDP, and the inflation rate reached %!

“And there is also a foreign debt of $5 billion, with interest payable of nearly $1 billion, which exceeds the country’s total exports.

"In other words, the country's economy is on the verge of collapse and bankruptcy.

"Bolivia had no choice but to take drastic measures. After all, how bad could it get? Of course, congratulations to them for making the right bet.

"But do we really need to take drastic measures and take huge risks?"

We have peace and tranquility.

The whole country is actively earning foreign exchange. Although the foreign exchange reserves cannot be said to be increasing year by year, they are generally on an upward trend.

There is not much foreign debt. It is worth mentioning that before the reform and opening up, we did not have a penny of foreign debt. Later, we wanted to borrow foreign capital to promote economic development.

Although the RMB is not popular internationally, it is still quite valuable for foreigners who want to exchange money. In 1, the exchange rate of the US dollar to the RMB was 3.7221:.

Because we have been implementing a planned economy for the past few decades, we have not even talked about inflation.

Our original intention in carrying out economic reforms is to achieve more efficient and long-term economic development, to make the country prosperous and to lift our people out of poverty.

That's it.

Li Jiankun's last question made many people at the scene fall into deep thought.

Friedman suddenly came to life and asked, "According to you, the economic situation in this country should just remain the same?"

Li Jiankun asked back: "Why not?"

Friedman suddenly perked up and said in a higher voice: "The problem is that your economy is clearly in trouble! Excuse me, the dual-track system is a joke.

“No one can cross a river and not get across it at the same time!”

Li Jiankun glanced at him and said, "That's because you haven't seen it."

Li Jiankun paused for a moment, scanned the audience, and said loudly:

"The dual-track pricing system is an extremely wise system."

"Hahaha!" Friedman's laughter came to my ears.

Everyone present had a stunned look on their faces, and then they looked at each other.

Because even they are now worried.

The researcher who was acting as the host looked at Li Jiankun and said, "Comrade Jiankun, you should be aware that problems such as commodity reselling and corruption are constantly growing and becoming increasingly serious."

Li Jiankun nodded and said:

"Didn't I just say that reform will inevitably be accompanied by pain? In this case, I would like to replace 'pain' with 'cost'."

Li Jiankun sighed and said:

“It’s hard to find a perfect solution that has no drawbacks.

“If you want to succeed, you have to pay a certain price.

“Why is there a dual-track pricing system?

"Aren't you worried that you might take too big a step? Governing a big country is like cooking a small fish. I think there is nothing wrong with this approach.

“The key to the economic reform from a planned economy to a market economy is price reform, but I think the time is not yet ripe for us to fully liberalize prices.

“The root cause is what I just said: insufficient confidence in the currency.

“We need to give some time, both domestically and internationally.

"During this period, we have used national stability and economic development to enhance people's confidence in the RMB. Over time, there will be more and more private and foreign-funded enterprises, and the various economies will continue to contribute, and there will be more and more goods on the market.

"Once people no longer have to worry about shortages, panic buying and hoarding will naturally disappear.

"By then we had the foundations of the 1948 West German economic reforms.

“That’s when we fully liberalize prices.”

Li Jiankun paused and said, "It will work!"

This is not his personal thinking, but what history tells him.

This process in our previous life took us thirteen years, from 1978 to 1992.

Of course, there was an interruption in the middle.

If his reminder today is effective, perhaps this time can be shortened to ten years.

"I thought you had some brilliant ideas."

A voice came from the side, saying: "After all, it's just a matter of - wait?"

Li Jiankun looked at Friedman, frowned, and asked, "If shock therapy is fully adopted and something goes wrong, will you take the responsibility?!"

"First of all, I want you to understand that you were the ones who invited me here."

Friedman said slowly: “Secondly, without any plan, there is no risk.

"In the end, what I want to say is, instead of waiting for a long time, why not give it a try? Your system also has advantages, and there will be no uncontrollable situations."

Li Jiankun said angrily: "It's easy to talk without any pain in the waist!"

Friedman shrugged, first looked at the researchers on the stage, then glanced at the audience, and said, "I can see that Mr. Li is a pessimist. He just analyzed many unfavorable factors, but completely forgot to analyze the advantages of your country.

“In addition to what I just said, your institutional advantages.

“One more thing: you have the best people.

"Based on these two positive factors, I still believe that your country's current economic dilemma can eventually be resolved smoothly even if drastic measures such as shock therapy are adopted."

He paused and said, "Of course, I'm just suggesting it. The choice is yours."

Li Jiankun stood up, looked around the room, and said with a serious expression: "Absolutely not. How is this different from being too eager for quick success? We don't need to take risks at all!"

The researcher who was acting as the host exchanged glances with the people in the front row, then stood up and raised the plug-in microphone and said:

"Okay, that's all for today's exchange meeting.

"Please ask Mr. Friedman and Comrade Jiankun's liaison to take you to the lounge to rest. There will be a luncheon at noon."

Farewell applause broke out in the hall.

Xiao Dong came up to Li Jiankun, made an inviting gesture and pointed to the hall door.

Li Jiankun took a deep breath. He had basically said everything he should or could say. He hoped that the bosses could make a wise decision.

Not long after.

Under the guidance of Xiao Dong, Li Jiankun came to a well-decorated lounge on the second floor of the hotel.

"Would you like tea or coffee, sir?"

"black tea."

"Okay."

Li Jiankun's thoughts were still in the conference room and he didn't notice that Xiao Dong's way of addressing him had changed.

After he and Friedman left, the door to the conference hall closed again and no one else came out.

Apparently there was still a meeting going on inside.

Originally, Li Jiankun didn't want to have lunch here, but after thinking it over, he decided to wait and see the final result.