The proactive fiscal policy that Li pledged at Davos will help, but monetary policy also needs to change. The conundrum facing China’s authorities is that monetary expansion would merely fuel a run-up in asset prices, rather than resulting in higher credit flows to the real economy.
李克强在达沃斯所承诺的积极财政政策有所助益，但货币政策也需要改变。中国当局面临的难题是货币扩张的唯一效果是助长了资产价格攀升，而不是实体经济信用流入的增加。