A Fiscally Low-Cost Solution to China’s Economic Challenges
Amid China’s persistent slowdown, the government has relied heavily on monetary and fiscal stimulus packages to boost GDP growth. Meanwhile, critical regulatory and governance reforms that could deliver a far greater economic boost at minimal cost remain conspicuously absent from the policy agenda.
https://prosyn.org/VxmgTsY
NEW YORK – The Chinese stock market has rallied recently in anticipation of another round of government stimulus. This is understandable, as the authorities have rolled out multiple monetary and fiscal stimulus packages to stave off deflation and boost GDP growth. But with public debt already well above historical norms, there is limited room for further fiscal intervention without risking a future debt crisis.