THREAD:1. As free #trade tends to face decline in marginal benefits and rise in marginal costs, it’s not a sure policy choice. CF40 senior fellow Zhang Bin talks about policy choices #China can take facing economic downward pressure
and trade uncertainty: cf40.org.cn/uploads/ZB2019…
2.Maintaining moderate #inflation level. Applying a combined CPI and PPI weighted value as an inflation indicator and setting a 2.5–3% inflation target.
3. Adopting a floating exchange rate and leaving sufficient space for monetary policies. A floating exchange rate is an automatic stabilizer in an #economy. Clean floating or the managed floating with a wide floating band is currently the
optimal arrangement.
4.Adopting a refined proactive fiscal policy that can stabilize the economic aggregate, improve the economic structure, and enhance sustainability. More special bonds should be issued to support the needs of infrastructure development.
5.Adapting to changes in the international environment with an open mind. Reducing import #tariffs to avoid an increase in effective tariffs. Reducing import tariffs on products from other regions would have three positive effects.
6.Resolving international disputes within a multilateral framework, participating in regional economic cooperation endeavors, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (#CPTPP), and promoting #WTO reform.
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