7 perspectives on how to deal with potential risks in the post-#pandemic era by Zhou Xiaochuan, former PBC Governor:
new.cf40.org.cn/uploads/202007…
1. The development of #COVID19 remains the most crucial issue. When formulating economic and financial policies, policymakers must first look at virus development and control.
2. With regard to macroeconomic policy response, policymakers often focus on the short-term effect of fiscal and monetary policies, but they also need to consider the medium effect though the two are sometimes at odds.
3. The pandemic will have a major impact on the micro level. Behavior patterns and demand patterns of enterprises and households will undergo major changes.
4. We will see structural changes that have not been foreseen. Life is more digital; the increase of total demand shouldn't only be about restoring demand, but also about seeking new growth points and new demand in new areas such as #ESG and green development.
5. Opening up. After the outbreak of COVID19, some countries turned to #protectionism and adopted a "buck-passing" attitude towards the pandemic and issues beyond it. But China is dedicated to further opening up.
6. Financial stability. About 80% of crises in history originated from problems in the real economy which eventually manifested as financial crises.
7. The pandemic places higher requirement on fimancial #infrastructure.
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