China Stimulus Measures Boost Debt With Economy

The video discusses China's use of off-balance sheet funding to meet growth targets, highlighting concerns from private sector economists about increasing debt. The state steps in to invest when the private sector withdraws, a move supported by Keynesian economics. However, the rapid debt accumulation poses risks to China's economic development, requiring a careful balance to avoid hindering growth.

What is the primary reason for China's use of off-balance sheet funding?

• To finance infrastructure projects

• To reduce official debt figures

• To decrease economic growth

• To increase private sector investment

What is the Chinese government's growth target mentioned in the video?

• 8%

• 7%

• 6.5%

• 5%

According to Keynesian economics, what should happen when the private sector reduces its spending?

• The state should decrease its investment

• The state should increase its investment

• The private sector should increase its investment

• The economy should slow down

What is a major concern for analysts regarding China's economic strategy?

• The decrease in state investment

• The slow pace of infrastructure development

• The rapid growth of the private sector

• The buildup of debt

What risk does the Chinese government face if it tries to deleverage too quickly?

• Lower state intervention

• A potential economic slowdown

• Increased economic growth

• Higher private sector investment