From the perspective of policy tools, #fiscalpolicy should play a leading role. mp.weixin.qq.com/s/cX2bE32pSE4_…
Fiscal policy is endowed with precise orientation, temporariness and limited latency; suitable for dealing with one-time and short-term shocks of the #epidemic, according to Zhang Bin, Senior Fellow of CF40.
Issuing special #treasurybonds as soon as possible to fill the gap between government revenue and expenditure is the key guarantee to prevent the broad credit from collapsing and the secondary damage due to the gap between local government’s revenue and expenditure.
The issuance of special treasury bonds has increased the broad credit of the whole society, made up for the decline in commercial loans during the epidemic, and helped maintain the stability of broad credit growth.
Issuing low-cost, long-term special treasury bonds with government credit is the best way to make good the shortfall.
Aggregate policy tools in monetary policy are not suitable for coping with epidemic brunt. The aggregate policy tool in #monetarypolicy is not time-limited, yet of long latency and no pertinence, not suitable for offsetting the impact of the epidemic.
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