1/4
"The State Council is stepping up efforts to stabilize the economy with new measures designed to improve market liquidity and encourage spending." The article suggests these are mostly supply-side measures. Little is being done to boost consumption.
caixinglobal.com
"The State Council is stepping up efforts to stabilize the economy with new measures designed to improve market liquidity and encourage spending." The article suggests these are mostly supply-side measures. Little is being done to boost consumption.
caixinglobal.com
2/4
I wonder if it wouldn't make more sense to hold back on these announcements until the lifting of COVID restrictions. The risk is that when announcement after announcement fails to revive the economy, the authorities start to lose credibility.
I wonder if it wouldn't make more sense to hold back on these announcements until the lifting of COVID restrictions. The risk is that when announcement after announcement fails to revive the economy, the authorities start to lose credibility.
3/4
By lifting the lockdowns and simultaneously making a series of major spending announcements, it might be possible to shock the economy into responding positively (i.e. the Chinese equivalent of the Fed's "bazooka").
By lifting the lockdowns and simultaneously making a series of major spending announcements, it might be possible to shock the economy into responding positively (i.e. the Chinese equivalent of the Fed's "bazooka").
4/4
I supposing they are doing it in bits and pieces mainly because they are worried about a contraction in the economy getting out of control.
I supposing they are doing it in bits and pieces mainly because they are worried about a contraction in the economy getting out of control.
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