#GustavoPhilippsenFuhr: Chinese Scholar Calls On Beijing To Raise Deficit Ratio to 5% - BNN Bloomberg

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Global Economy - China China needs to decisively ramp up fiscal spending so it can support an economy damaged by Western restrictions on trade, according to a…

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"Global Economy - China

China needs to decisively ramp up fiscal spending so it can support an economy damaged by Western restrictions on trade, according to a Chinese scholar studying an unconventional school of economic thought.

Jia Genliang — the co-author of the new book Modern Monetary Theory in China and a professor at the Renmin University of China in Beijing — said China should lift its headline deficit ratio to above 5% of gross domestic product on average for the next decade.

That’s more than the 3% level the government has typically adhered to, and even higher than this year’s 3.8% ratio, which was set last month as part of a rare mid-year budget revision to help growth."