Has China’s monetary policy lost its power to move the economy?

China has relied on increasing its pool of engineers. Its strategy is finally bearing fruit and it now has an advantage in scientific and technological innovation over its rivals.China has been betting on increasing its pool of engineers since the early 2000s. A recent analysis reveals that this strategy is finally bearing fruit. Between 2000 and 2020, the number of engineers has increased from 5.2 million to 17.7 million. This pool of talent ma…

Has China’s monetary policy lost its power to move the economy?

Concerns have arisen in China that efforts to boost the economy via monetary loosening will prove ineffective, or even heighten risk for a banking sector struggling to boost profits. A leading Chinese economist argues that this is because households and private businesses remain reluctant to borrow for spending or investment purposes, with many still dialling back leverage in a situation much akin to a “balance sheet recession.”Other policy conc…