Options for Encouraging Stable Growth

The Chinese economy is slowing down, and another round of stimulus won't work.

If we resort to loose monetary policies and expansionary investment policies on a large scale, like we did in 2008, the economic system will become more imbalanced. Even more serious, it will be difficult to resolve problems that will arise as a result. Even though growth might be increased in the short term, if we don't solve the problem of structural imbalances, growth will fall and we may even enter a period of stagflation.