Macro Leverage and Cross-Cycle Adjustment
2021-04-26
Zhang Xiaojing
Source：
China Finance
Abstract:
On July 30, 2020, China’s Central Political Bureau meeting proposed to “improve the cross-cycle design and adjustment of macroeconomic regulation in order to achieve a long-term balance between stabilizing growth and preventing risks.” Since then, the concept of cross-cycle adjustment has increasingly attracted attention. In what sense does cross-cycle adjustment represent a new way of thinking? Why does leverage policy highlight the importance of this approach? And how can cross-cycle adjustment be effectively implemented? This paper explores these questions in depth.
On July 30, 2020, China’s Central Political Bureau meeting proposed to “improve the cross-cycle design and adjustment of macroeconomic regulation in order to achieve a long-term balance between stabilizing growth and preventing risks.” Since then, the concept of cross-cycle adjustment has increasingly attracted attention. In what sense does cross-cycle adjustment represent a new way of thinking? Why does leverage policy highlight the importance of this approach? And how can cross-cycle adjustment be effectively implemented? This paper explores these questions in depth.
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