China Securities Journal (via MNI) cites State Council’s Development Research Center Vice Director Liu Shijin:
- Says a reserve-ratio or interest-rate cut may have a limited effect only on the economy because the money released may go to the stock market instead as a result of industrial overcapacity
- Fiscal policy is more effective and government investment in infrastructure and other projects should be increased
- Moderate stimulus is necessary to prevent a rapid economic slide but won’t help long-term structural problems
