China manages its finances in public

This is a little challenging for normal people. But if you duck the buzz words you can pick up its meaning. The point is that none of this is happening without a high degree of certainty.
It is one of many remarkable examples of China becoming more sophisticated in a crisis than its western teachers who simply reach for QE.
We shall see whose balance sheet comes out best over three years.
Not a race. Not a game. It is an indication of which nation is preparing for crises effectively.
It makes the Rmb a good investment.
Let’s see what happens
Offset Economic Shock
Xinhua  CPC WORKS  Today
To lower lending costs and offset the economic shock of the novel coronavirus (COVID-19) outbreak, China’s central bank on March 30 pumped liquidity into the market through seven-day reverse repos while cutting its interest rate by 20 basis points.
The rate cut has echoed arrangements at the meeting of the Political Bureau of the Communist Party of China Central Committee on March 27 that prudent monetary policy should be pursued with more moderate flexibility, said Wen Bin, a chief researcher with China Minsheng Bank.
A package of macro policies and measures will be introduced, the meeting noted, and China will appropriately raise the fiscal deficit ratio, issue special treasury bonds, increase the scale of special bonds for local governments, and guide the interest rate to decline in the loan market.
“China is establishing a macro adjustment system with fiscal and monetary policies being the main methods, harnessing synergies of the policies related to employment, industries, investment, consumption and regional development,” Bai Jingming, vice president of the Chinese Academy of Fiscal Sciences, told Economic Daily.
Amid the country’s efforts to contain the COVID-19 outbreak, expenditure on health saw double-digit growth, up 22.7 percent

Categories: China growth, Currency, Health sector, Uncategorized

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