Yu Yongding: The continuous decline in growth is Chinas most serious challenge

Yu Yongding, a member of the Chinese Academy of Social Sciences, said that the most serious challenge in China is the continuous decline in economic growth. It is difficult for monetary policy to promote the economic protagonist.Policies, from the perspective of inflation or financial resources, the boundary of 2.8%of the fiscal deficit can break through.

According to Reuters, Yu Yongding said in the forty forums held in Yichun, Heilongjiang yesterday (10th) that from the perspective of financial and inflation, I think China is possible and should take it more more than it should be adopted.Expansion fiscal and monetary policy stops the further decline of the economy.

He pointed out that it should be noted that in 2008, China has adopted an expansion fiscal policy. To a large extent, it does not rely on the government to increase fiscal expenditure, but to require local governments to establish a financing platform to borrow from commercial banks. This method is wrong.Essence

He also said that under China's current circumstances, what to do is to increase fiscal expenditure and the issuance of government government bonds. The cooperation of the central bank to lower the interest rate and sell the national debt.At the same time, the expansion fiscal policy is used to ensure that the level of interest rates is relatively low, and the funds are driven out of the real estate market and other capital markets to allow it to enter the real economy.

Yu Yongding pointed out that in this way, the decline in China's economy can be stopped, and this is the best weapon against the US trade war.Of course, emphasizing expansion fiscal policies emphasize demand management, it does not mean ignoring structural reforms and neglecting more profound reforms in other aspects.These two are parallel.

As a macroeconomist, I think that the correct policy is to adopt expansion fiscal policies, supplemented by expansion monetary policy, to prevent the decline in China's economy. To achieve this, China's economy has maintained a high growth of 10 by 10 by 10 10 10The possibility of the year may even be longer.

China ’s national budget deficit in 2019 was RMB 2.76 trillion (S $ 546.8 billion), an increase of 380 billion yuan from the previous year; the deficit rate was 2.8%, which was slightly increased from the previous year.The Ministry of Finance of China said that this year's active fiscal policy must take efficiency and implement a larger scale of tax reduction and fees;