NDRC Reveals Hidden Turf War, Calls for Easy Money

The NDRC posted a statement on economic policy which at one point calls for cuts to interest rates and the reserve requirement ratio (RRR) overnight, but this part of the statement was later scrubbed. This reveals the behind the scenes battle between the hard money/reform camp and the easy money factions.

The rest of the statement called for lowering business costs in order to increase private investment. That's been Li Keqiang's major effort since taking office and it has delivered exactly nothing. Last year: Li Keqiang Losing War on Financing Costs; 70% of SMEs Have Seen Financing Costs Rise in 2015

There's nothing particular about the NDRC statement which suggests anything will change. Furthermore, the call for weaker monetary policy contradicts parts of the statement, such as the call "to promote healthy real estate investment." So in addition to battling other agencies over major policy moves, there is confusion within the agencies, and within the own minds of economists, over how to stimulate growth amid a global depression which very few are willing to recognize.

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