One size does not fit all: the need for flexibility in policy responses to slow growth

The root cause behind the Chinese economy's slowing down in 2012 lies in a "one-size-fits-all" approach to macroeconomic management. This approach must be abandoned if domestic demand is to be effectively boosted. A superior approach would involve the introduction of policies tailored...

Full description

Saved in:
Bibliographic Details
Published in:China Finance and Economic Review 2015-12, Vol.3 (1), p.1-7, Article 5
Main Author: Wang, Songqi
Format: Article
Language:English
Subjects:
Affordable housing
Cities
Credit management
Deflation
Development Economics
Economic Growth
Economic Policy
Economics
Economics and Finance
Government
Growth rate
Housing prices
International finance
Macroeconomic management
Macroeconomics
Macroeconomics/Monetary Economics//Financial Economics
Regulation
Review
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The root cause behind the Chinese economy's slowing down in 2012 lies in a "one-size-fits-all" approach to macroeconomic management. This approach must be abandoned if domestic demand is to be effectively boosted. A superior approach would involve the introduction of policies tailored to the specific needs of the economy. It would call for some combination of fiscal and tax measures to stimulate investments, to enhance the profitability of non-Internet-based economic sectors, to ease lending restrictions, and to increase the growth rate of the money supply. There is little risk of inflation in China in the short term, but deflation is a real threat.
ISSN:2196-5633
2095-4638
2196-5633
DOI:10.1186/s40589-015-0020-9