Original Article Post Date:
Project Syndicate, Yu Yongding
BEIJING – Since last November, economists and the media alike have been hailing supply-side structural reform as a groundbreaking solution to China’s economic woes. After all, the logic in China goes, demand-side policies, in the form of Keynesian stimulus measures, are useful only for resolving short-term and aggregate problems. Because China’s problems are long term and structural, the country should be focused on supply-side structural reform, even if it means accepting slower GDP growth. Is this the right approach?