BEIJING (Reuters) – China should ramp up its fiscal stimulus to spur economic growth and set a firm inflation target to prevent the country falling into a “low inflation trap”, a central bank policy adviser said in remarks seen on Friday.
China’s leaders signalled this week that fiscal support for the rest of the year will “focus on consumption”, aiming to boost incomes and social welfare, following plans to use funds from government bonds to finance trade-ins on consumer goods.
“We need to increase the intensity of macroeconomic policies, especially to implement the already arranged fiscal expenditures as soon as possible,” Huang Yiping, a policy adviser to the People’s Bank of China (PBOC), said in an article published by Peking University’s National School of Development on its Wechat account.
Huang, an influential Chinese economist who heads the school, suggested that if central bank and finance ministry policies are too…
