China should step up borrowing to boost domestic demand, economist says
Huang Yiping recommends ‘more aggressive’ macroeconomic policy from central government to aid those affected by property crisis
“If I can make a recommendation, what I think we could also do is to put together a more aggressive macroeconomic policy using central government leverage or adding central government leverage,” said Huang Yiping, a professor at Peking University and dean of its National School of Development, at the Bund Summit in Shanghai on Saturday.
“If we can do that, the central government’s leverage room will rise, but I think we’re going to see a big boost to domestic demand,” said Huang, who is also a member of the monetary policy committee of the People’s Bank of China.
The outstanding debt of China’s central government accounted for about 22 per cent of the country’s gross domestic product, Huang said, placing it in the lower-middle tier globally.