CX Daily: Interview: How a Massive Injection of Money Could Kick-Start China’s Growth

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Interview: How a massive injection of money could kick-start China’s growth

As Chinese policymakers look for solutions to tackle the country’s debt overhang, ease deflationary pressure and rekindle growth, finance professors Patrick Bolton and Huang Haizhou say the government could take a leaf out of the corporate playbook.

Just as companies issue equity to raise money to finance their investments and improve returns, the People’s Bank of China (PBOC) could issue money to recapitalize banks and resolve the debts of local governments, Bolton and Huang posit in their new book, “Money Capital: New Monetary Principles for a More Prosperous Society.” Its main premise is that monetary economics can be viewed through the lens of corporate finance, with money being seen as the equity capital of a nation, playing a similar role to shares for a company.