Randy Wray — Monetary and Fiscal Operations in China, An MMT Perspective

Here’s a piece I wrote with Yolanda Fernandez for the Asian Development Bank.

Monetary and Fiscal Operations in the People’s Republic of China: An Alternative View of the Options Available

You’ve no doubt read various analyses predicting the impending collapse of the Chinese financial sector, and arguments that China cannot continue to grow at a rapid pace. While we do think that China faces some challenges, we part company with the gloom and doom crowd. What most of them do not understand is that China is a sovereign country that issues its own currency. Affordability is not an issue. China has the fiscal capacity to resolve any financial crisis, and it can “afford” to grow fast if it chooses to do so....

Economonitor — Great Leap Forward
Monetary and Fiscal Operations in China, An MMT Perspective
L. Randall Wray | Professor of Economics and Research Director of the Center for Full Employment and Price Stability, University of Missouri–Kansas City