From the South China Morning Post, October 18:
Go big or bear the risk of watching China’s economy fall off a cliff, says prominent head of fiscal academy associated with Ministry of Finance
China should take unconventional action to prevent a worst-case scenario in which the economy could “fall off a cliff”, as there are signs of a fundamental shift in Beijing’s understanding of debt and deficits as well as in policymakers’ mindset on macroeconomic risks and stimulus packages, according to a prominent economist with close ties to the finance ministry.
The comments by Liu Shangxi, head of the Chinese Academy of Fiscal Sciences, affiliated with the Ministry of Finance, came after the central leadership’s decision to implement a slew of incremental policy support measures, and amid fervent debate and speculation about the state of the economy and Beijing’s resolve in the absence of a headline-grabbing stimulus figure like what was seen in 2008....
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