China Should Use Quantitative Easing If Needed: Ex-PBOC Adviser
- Beijing has long rejected Western-style quantitative easing
- Case was made by Yu Yongding, a well-known Chinese economist
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China should shake off its “taboo” regarding quantitative easing — the once-unorthodox central bank policy of buying government bonds — and recognize that it may be necessary in the interest of stoking economic growth, a former People’s Bank of China adviser said.
Chinese policymakers have long rejected QE, which was used by most advanced economy central banks as a stimulus tool after they had lowered interest rates toward zero. It’s sometimes been associated with stagnant economic growth and excessive public debt, and by some critics as evidence of Western economies’ decline.