China Says More Tax Cuts Coming While Signaling Easier Monetary Policy

The video discusses China's economic policies, focusing on targeted stimulus measures expected to be implemented next year, including potential tax cuts and accommodative monetary policies by the PBOC. Concerns about the yuan's stability and the impact of large stimulus packages on the currency are highlighted. Additionally, the challenges of continuing the deleveraging campaign amidst these policies are addressed, with emphasis on improving monetary transmission to effectively distribute funds within the economy.

What type of economic measures is China expected to continue implementing?

• Large-scale stimulus

• No stimulus

• Targeted but limited stimulus

• Austerity measures

What is a potential consequence of a large stimulus package on the yuan?

• Strengthening of the yuan

• No effect on the yuan

• Increase in yuan's value

• Downward pressure on the yuan

Why is there limited room to expand the monetary base in China?

• Because of low interest rates

• Because of currency constraints

• Due to high foreign reserves

• Due to high inflation

What is one of the main challenges in continuing China's deleveraging campaign?

• Large-scale monetary stimulus

• Low economic growth

• High inflation rates

• Lack of government support

What is the government's strategy to improve economic conditions without flooding the market?

• Reducing exports

• Cutting public spending

• Aiding money transmission

• Increasing taxes