Given how weak domestic demand has been recently -- and how little China has done over time to provide policy support to household income -- it would be helpful if China's incoming economic policy team spelled out how they intend to achieve this (laudable) goal.
One of the many things I liked about the Barcelona, Cascaldi-Garcia, Hoek and Van Leemput paper is that they used the credit impulse as the proxy for China's policy stance --
federalreserve.gov
federalreserve.gov
"a primary tool of China's stabilization policy-encompassing monetary, fiscal, and regulatory policies-is controlling the amount of credit in the economy" --
very true, tis the main way China has historically supported demand.
but not sure the same tactics will work this time
very true, tis the main way China has historically supported demand.
but not sure the same tactics will work this time
Agree with @EtraAlex by the way -- the Fed paper really is excellent. My compliments to the authors.
federalreserve.gov
federalreserve.gov
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