# In an interview with Professor Daniel Altman, Professor Viral Acharya talks about his research on the impact of shadow banking on China’s financial markets

1 Faculty News August 31, 2015 ![Foreign Policy logo](/sites/default/files/styles/246w/public/assets/images/con_030825.jpg?itok=uQL2jfhQ)>

Excerpt from [Foreign Policy](http://foreignpolicy.com/2015/08/26/shadow-banking-is-killing-chinas-stock-markets/) -- "But as the episode unfolds, you realize some things about the use of debt-fueled stimulus for the economy... It produces short-term gains by making investment and output seem stable but carries the long-term risk of a protracted slowdown... It seems each country needs its own crisis to learn the hard lesson. It must be that the underlying political imperative to generate short-term growth at all costs is too strong, and political time horizons are far too short."

[Read more](http://foreignpolicy.com/2015/08/26/shadow-banking-is-killing-chinas-stock-markets/)