Yu Yongding: Can China Stabilize Its Economy Without Increasing Central Government Debt?
When effective demand weakens, a government often looks to boost infrastructure investment to drive economic growth. The core of China’s expansionary fiscal policy is having local governments, and enterprises, especially state-owned ones, increase infrastructure investment.
However, a successful implementation of infrastructure investment and its effectiveness in stimulating China’s economic growth are subject to external conditions such as Covid-19 restrictions, and whether certain operational problems can be solved. Two major problems lie in the financing structure of infrastructure investment and the use of local governments’ special-purpose bonds (SPBs).
Yu Yongding, a former president of the China Society of World Economics and director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, served on the Monetary Policy Committee of the People’s Bank of China from 2004 to 2006.
- 1Chief Designer of China’s J-20 Stealth Fighter Disappears From Elite Academic Roster
- 2Exclusive: First Chinese Supertanker Loads Saudi Crude via Red Sea, Bypassing Strait of Hormuz
- 3Qatar Helium Shutdown Adds New Risk to Chip Supply Chain
- 4In Depth: China’s Apartment Middlemen Lose High-Stakes Bet That Rents Will Only Go Up
- 5Former Head of China’s Mega-Firm Steps Down Amid Default Scandal
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas
Sign in with Google
Sign in with Facebook
Sign in with 财新