Part 6/6:
- Refuse to play the accommodating role in global imbalances, regain control of the capital account and trade account, and rebalance the economy through measures like taxing capital inflows.
The most likely scenario is a prolonged period of much slower GDP growth and a gradual rebalancing of the economy, similar to Japan's experience in the 1990s and 2000s. Achieving a more rapid rebalancing would require significant transfers from local governments to the household sector, which faces significant political and economic obstacles.