Contents -- Preface -- Part 1 Economic Development -- 1. Entrepreneurship Propelling Economic Changes in China -- 1 Where do the Most Important Changes Take Place? -- 2 Who are Responsible for the Important Changes? -- 3 What is the Environment in Which the Entrepreneurs Strive? -- 3.1 The government -- 3.2 China's market institutions -- 3.3 Chinese legal institutions -- 3.4 The Chinese culture in defining the rules of the game -- 3.5 Chinese workers -- 3.6 The Chinese entrepreneurs themselves -- 4 Will the Changes Continue? -- 5 What Policies Could Improve the Changes in the Future? -- 5.1 Government -- 5.2 Market institutions -- 5.3 Legal institutions -- 5.4 Culture -- 5.5 Workers -- 5.6 The entrepreneurs themselves -- 6 Summary -- References -- Appendix A: Top Six Richest Persons in China from Forbes' List -- 2. China's Economic Reform: Retrospect and Prospect -- 3. Review of China's Economic Development in the 20 years Since 1989 -- 1 Accomplishments -- 2 Role of the Open-Door Policy -- 3 Role of the Non-State Sectors -- 4 Income Inequality -- 5 Problems in the Rural Economy -- 6 Corruption -- 7 Healthcare -- 8 Old Age and Unemployment Insurance -- 9 Energy and Environment -- 10 Prospects -- 4. How has the Chinese Government Changed Since the 1980s? -- 5. Why China's Economy has Grown so Rapidly -- 6. China's History and its Human Capital -- 1 Shang, 1600 BC -- 2 Zhou, 1100 BC -- 3 Qin, 200 BC -- 4 Han, 206 BC-220 AD -- 5 Tang, 618-907 -- 6 Song, 960-1126 -- 7 Yuan, 1279 -- 8 Ming, 1415 -- 9 Qing, 1760-1911 -- 10 Republic of China, 1911 -- 11 People's Republic of China, 1949- -- 7. China's GDP to Exceed the US GDP in 2020: A Re-estimation of the Forecast -- 8. From Receiving Foreign Investment to Investing Abroad -- 9. From Learning to Innovating in Science, Technology and Education -- 10. How will the Chinese Society Continue to Improve?.

Part 2 Economic Analysis -- 11. A First Lesson in Microeconomics: Demand for Education in China -- 12. Supply and Demand for Healthcare in China -- 13. Is the Price of Urban Housing in China Determined by Market Forces? -- 14. A Lesson in Macroeconomics: The Determination of Consumption and Investment -- 15. Exchange Rate, Money Supply and the Overheating of the Chinese Macroeconomy -- 16. Using Friedman's Theory to Explain Inflation and the Overheating of the Chinese Macroeconomy -- 17. Should China Revalue its RMB: Email Exchanges Between Gregory Chow and Ronald McKinnon -- Email Exchange Set 1: Friday, July 29, 2005 -- Email Exchange Set 2: Monday, August 1 [Gregory's Comments in Square Brackets] -- 18. How are Prices of Stocks in China Determined? -- 19. How are Stock Price Movements in the Shanghai and New York Stock Exchanges Related? -- 20. Misunderstanding of China in the Western Press -- Reference -- 21. Are Chinese Official Statistics Reliable? -- 1 Introduction -- 2 Data Quality in General -- 3 Using Official Statistics to Understand the Chinese Economy -- 3.1 Descriptive statistics of the Chinese economy -- 3.2 An aggregate model of national income determination -- 3.3 Family expenditure patterns from cross-section data -- 3.4 An aggregate production function for China -- 3.5 Explaining inflation by the ratio of money supply to total output -- 3.6 Effects of monetary shocks on output and prices -- 3.7 Estimating the economic loss of the Great Leap Forward and the Cultural Revolution -- 3.8 Demand for education -- 3.9 Explanation of the rate of return to schooling -- 4 Examples of Errors in Official Data -- 5 Official Estimate of the Rate of GDP Growth -- 6 Conclusion -- Acknowledgments -- References -- 22. Will China Experience Serious Inflation? -- Acknowledgments -- References -- 23. How to Put "Seek Truth from Facts" into Practice.

Part 3 Economic Policy -- 24. From Economic Research to Social Change -- 1 A Gap Between Academic Knowledge and the Ability to Apply It to Solve Practical Problems -- 2 A Gap Between Choosing the Right Economic Knowledge for Application and Making a Sound Policy Recommendation -- 3 Important Points to Note in Giving Economic Advice -- 4 Using the Framework of Dynamic Optimization to Provide Economic Policy Advice -- 5 Implementation of Government Policies -- 6 Making Social Changes Without Going Through the Government -- References -- 25. Has China Solved its Population Problem? -- 26. The Problem of Rural Poverty in China -- 1 Introduction -- 2 Statistics on Rural Poverty and Economic Disparity in China -- 2.1 Trends of per capita income and consumption of urban and rural residents -- 2.2 Percentage of rural residents with per capita income below the poverty line -- 2.3 Inequality in wealth distribution -- 3 Three Components of the Problem of Rural Poverty -- 4 Solution Proposed by the Chinese Government -- 5 Two Policy Issues in the Solution of the Chinese Government -- 6 Comparison with India -- 7 Conclusion -- Acknowledgments -- References -- 27. Why is Healthcare in China So Expensive? -- 28. How to Solve the Problem of Income Inequality -- 29. Can we Understand Corruption Using Tools of Economics? -- 30. How to Improve the Regulation of Industrial Pollution in China -- 31. China's Successful Experiences in Solving Energy and Environmental Problems -- 32. A Proposal to Regulate CO2 Emissions Through the United Nations -- Part 4 Thoughts About the American Economy -- 33. Milton Friedman - as a Scholar, as a Person - and China -- 34. How are American Universities Different from the Chinese? -- 35. What you Need To Know to Apply to Elite American Universities -- 36. The Financial Crisis and the World Economy.

37. What are the Shortcomings of the American Financial System? -- 38. What is the Nature of the American Financial Crisis? -- 39. Why was Obama Elected President of the United States? -- 40. How will Obama Set his Policies for Economic Recovery? -- 41. Should the American Government Bailout the Automobile Industry? -- 42. The Excitement of Obama's Inauguration -- 43. Are Obama's Economic Policies Essentially Correct? -- 44. The Serious Problems Facing Obama -- About the Author.