Thursday, August 26, 2010

China's new economy is still very young

China's new economy is still very young and eight to ensure the growth policy with a huge investment in this cane as its escort. In the days volume of liquidity caused by the credit front, there is monetary policy can made to continue to have concerns and doubts. Fudan University Economic Research Center of China, Dr. Fu Yong, a few points worth considering, first: There is no need to implement the exit policy. Despite the economic situation getting better and better, more and more uncertain future , but only the recovery of economy to a normal level of the process, the economy has not yet reached the level of potential output. This means two things,continues to stimulate the economy will help the economy return to normal activity level, increase output, Jiuye and Shouru ; second is to stimulate policy also does not produce significant risk of overheating, the cost of smaller stimulus. Second: the price index is expected to soon become positive, but this change should not be over-exaggerated, monetary policy shift of the critical Points also will not come.

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