China’s policy mix “proactive” and “prudent” in name, but tightening in practice

Françoise Huang, senior economist for Asia-Pacific at Euler Hermes, writes that China’s economic stimulus will not be saving the global economy this time round. In fact, there are already clear signs of its policy mix tightening.
Authorities in China are describing the policy mix in 2021 as “proactive” on the fiscal side, and “prudent” on the monetary side. However, China’s monetary policy already started to tighten in the fourth quarter of 2020, in sharp contrast to the world’s other major economies

Leave a Reply

Your email address will not be published. Required fields are marked *