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Chinese macroeconomic management through the crisis and beyond

Author

Listed:
  • Adam McKissack

    (Treasury, Government of Australia)

  • Jessica Xu

    (Treasury, Government of Australia)

Abstract

As in all the other major economies, China’s macroeconomic policy framework was put to the test during the global financial crisis. China applied one of the world’s largest stimulus packages. The package provided a very rapid boost to activity in the Chinese economy, with empirical evidence suggesting the package added around 2-3 per cent to the level of GDP in both 2009 and 2010. The stimulus package was clearly a success for China, but there are challenges in unwinding the effects of the stimulus and addressing structural imbalances. Pressures to rebalance Chinese growth and integrate China further into global capital markets will necessitate changes in China’s macroeconomic policy framework.

Suggested Citation

  • Adam McKissack & Jessica Xu, 2011. "Chinese macroeconomic management through the crisis and beyond," Treasury Working Papers 2011-01, The Treasury, Australian Government, revised Jun 2011.
    • Handle: RePEc:tsy:wpaper:wpaper_tsy_wp_2011_1
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Felipe, Jesus & Lanzafame, Matteo, 2020. "The PRC's long-run growth through the lens of the export-led growth model," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 163-181.
    2. Wu, Qiyan & Zhang, Xiaoling & Liu, Chunhui & Chen, Zhou, 2018. "The de-industrialization, re-suburbanization and health risks of brownfield land reuse: Case study of a toxic soil event in Changzhou, China," Land Use Policy, Elsevier, vol. 74(C), pages 187-194.
    3. Miao Han, 2012. "The People's Bank of China during the global financial crisis: policy responses and beyond," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 10(4), pages 361-390, August.
    4. Burdekin, Richard C.K. & Weidenmier, Marc D., 2015. "Assessing the impact of the Chinese stimulus package at home and abroad: A damp squib?," China Economic Review, Elsevier, vol. 33(C), pages 137-162.
    5. Guonan Ma & James Laurenceson, 2019. "China’S Debt Challenge: Stylized Facts, Drivers And Policy Implications," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 815-837, September.
    6. Chen, Quanrun & Dietzenbacher, Erik & Los, Bart & Yang, Cuihong, 2016. "Modeling the short-run effect of fiscal stimuli on GDP: A new semi-closed input–output model," Economic Modelling, Elsevier, vol. 58(C), pages 52-63.
    7. Yuan, Wenlong & Bao, Yongjian & Olson, Bradley J., 2017. "CEOs’ ambivalent interpretations, organizational market capabilities, and corporate entrepreneurship as responses to strategic issues," Journal of World Business, Elsevier, vol. 52(2), pages 312-326.
    8. Su, Chi-Wei & Wang, Xiao-Qing & Tao, Ran & Chang, Hsu-Ling, 2019. "Does money supply drive housing prices in China?," International Review of Economics & Finance, Elsevier, vol. 60(C), pages 85-94.

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    More about this item

    Keywords

    economic stimulus; global financial crisis;

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)

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