Chinese Economy Keeps Getting Anesthetized, But No Operation Yet

Pan Xiangdong, Chief Economist of China Galaxy Securities:

But whether the central bank will take the RRR this way, Pan Xiangdong have different views.

"Steady growth as a counter-cyclical policy measures introduced, is to win time for the structural reforms, but it is regrettable that, while the introduction of counter-cyclical policies, structural reforms were not fully supporting, is 'anesthetic' constantly playing, but the 'operation' has yet to do, which makes the market expectations of future economic growth is not optimistic in the short term in order to continue to pursue structural reforms necessary time, it required a certain counter-cyclical policies to maneuvers of space and time. "Therefore, he believes that" in the case of the third quarter, fourth quarter, yet away from the pressures of the economic downturn, fiscal policy needs to be more active, combined with supply-side structural reforms to adapt to a prudent monetary policy. "

In his view, the continued monetary easing flood irrigation formula for aggregate demand stimulation diminishing marginal utility, limited room for monetary policy: First, from the short-term control of exchange rates dimension within a reasonable range of fluctuations to consider lowering interest rates and other quasi-total use tools on the loose will be very cautious. Secondly, to maintain the general domestic prices and asset price stability point of view, the current CPI is indeed there was a certain degree of decline, but the CPI is reflected in the general price level index, and excessive financial leverage and rising levels of asset prices will also be monetary authorities consider an important factor. Again, from the requirements of the supply-side structural reforms to raise aggregate demand management point of view, the total amount of monetary policy easing space is limited.

"Under the current context of structural reforms, monetary policy is difficult to further implementation of the total easing, monetary policy should not be given too great a burden. The current should be based on promoting the implementation of structural reforms, deepen fiscal and tax reform, so that positive really positive fiscal policy, financial leverage to leveraging the vitality of the real economy, as opposed to monetary easing blindly turn on the water would be better. "Pan Xiangdong said.

iFeng: 专家：中国经济“麻药”不断打 “手术”还没做