If China’s government is to prevent a debt-deflation spiral from causing a hard landing, it should shift its focus to targeted expansionary fiscal policy. With a budget deficit of 2.3% of GDP, China can certainly afford to increase government expenditure and reduce taxes.
如果中国政府要阻止债务-通缩循环演变为硬着陆，它应该将重点转到定向财政政策宽松。中国政府预算赤字只占GDP的2.3%，必然能够负担政府支出的增加和减税。