[Shang-Jin Wei] Institutional reforms China needs
The Chinese stock market has rallied recently in anticipation of another round of government stimulus. This is understandable, as the authorities have rolled out multiple monetary and fiscal stimulus packages to stave off deflation and boost GDP growth. But with public debt already well above historical norms, there is limited room for further fiscal intervention without risking a future debt crisis. Given this constraint, China should focus on policies that stimulate entrepreneurship, investmen
Dec. 11, 2024