China’s latest economic stimulus package is marking a critical step to restore investor confidence and promote high-quality development. The monetary part of the package features cuts in policy interest rates and the amount of cash that banks must hold as reserves. Measures to support the property sector include cuts in mortgage rates and down payment ratios. There are also signs that fiscal stimulus is gaining traction among policymakers. Prof. Angus Chu, Head of the Department of Economics of FSS had an interview with CGTN Radio recently. He discussed the rationale and effectiveness of this monetary and fiscal policy stimulus package put forth by the Central Government.
To what extent will the package supercharge China’s economy? Will it also place China on the right track to fulfill its long-term goals? For details, please listen to the radio via this link.
