China Tells

The world’s greatest stimulus program in terms of scale, China’s government’s loose monetary policy, is likely to continue in 2010. According to a politiburo meeting held this week, the top 25 government officials confirmed the government’s intention to continue such a policy (See Article from WSJ). China government started its record 4 trillion stimulus program in Q1 of 2009. Such a policy seems to have saved China’s falling retail price (See Graph from Chinatells), fixed asset investment (See Graph from Chinatells) and import growth (See Graph from Chinatells). However, economists have expressed worry on the long term implication in such a policy particularly in inflation.

中国政治局最高领导在最近的会议上讨论了中国的经济问题，同时做出结论目前的经济复苏还很脆弱，所以今年第一季度开始的刺激政策在2010年应该还会继续。在这一波的刺激中，央行将利率下降并且政府大手采购，致使中国经济在全球萧条的背景下不至于受损太严重。