Residents in Shanghai share a bike as they ride on an empty road on June 1. China’s leading financial and business hub is coming out of a two-month Covid-19 lockdown that has set back the national economy and largely confined millions of people to their homes. Photo: AP
Opinion
Opinion
Macroscope
Fiscal spending a better tool than monetary easing to boost China’s economic growth
- Another interest rate cut could further weaken the renminbi while global inflation risks are rising and higher import costs threaten domestic price stability
- By contrast, rolling out more fiscal stimulus is a viable option as there is precedent of a higher budget deficit, and investor demand for Chinese debt remains firm
Residents in Shanghai share a bike as they ride on an empty road on June 1. China’s leading financial and business hub is coming out of a two-month Covid-19 lockdown that has set back the national economy and largely confined millions of people to their homes. Photo: AP
