China eager to boost economic growth – but will it manage?

//China eager to boost economic growth – but will it manage?

China eager to boost economic growth – but will it manage?

Bloomberg: China’s Stimulus Debate Is Still Alive After Grim Trade Data

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Article published: Sep 8, 2019

IB Economics syllabus: Macroeconomics (expansionary monetary and fiscal policy)

China is desperate to keep economic growth above 6% and it is having a hard time doing so mostly due to the ongoing trade war with the U.S. It has tried a fiscal stimulus (expansionary fiscal policy) through a tax cut for firms and households, and more recently, monetary easing (expansionary monetary policy) by reducing the reserve ratio that banks have to hold onto. Thereby, the liquidity in the markets was increased (higher money supply) but there are not many signs indicating that these policies would actually help the government reach its goal of keeping economic growth up.

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By | 2019-09-11T12:56:55+00:00 September 11th, 2019|Macro|Comments Off on China eager to boost economic growth – but will it manage?

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I started my career as a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 6 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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