Yu Yongding a former advisor to the PBOC, and now an economist at the Chinese Academy of Social Sciences, says that inflation in China is “on the whole under control” and that the greater risk is to growth.
Obviously an appreciable slowdown in China doesn’t bear thinking about. At the end of the day, it’s their job to save the world!!
The economist prefers fiscal stimulus over monetary, saying there is ample room for more infrastructure projects in China. On the monetary policy side, he feels easier monetary policy is unlikely in the near-term as inflation remains well above target levels.
