By Chen Changsheng & Xu Wei, Research Team on “Strategic Policies on Leading Economic Development in the State of New Normal”, DRC

Research Report, No.113, 2017 (Total 5188) 2017-09-08

Abstract: After over seven-odd years of adjustment, China’s economy is now at a crucial stage to build a new growth platform. In light of the relevant features such as the shift of growth stages, deepened systematic reform and the open-oriented economic performance, we need to optimize the macro-regulation approaches and framework so as to achieve economic balance under the restraints of high leverage ratio, risks in various areas and limited space for policy adjustment. When we set macro-regulation targets, we need to pursue a quality-based speed and give top priority to full employment, stable pricing and financial stability. We need to implement a prudent monetary policy across the board and a proactive fiscal policy to enhance the overall efficiency of macro-regulation; properly address the relations between reform and macro-regulation and promote reform in major sectors while issuing more preferential policy measures for stable growth; improve the pricing mechanism of productive factors, strengthen restraints on property rights and budgets and flesh out the transmission mechanisms for policies; enhance expectation management, pay attention to the coordination of global macro-regulation policies and consummate the bilateral and multi-lateral coordination mechanisms; and enforce big data- and Internet-based information sharing between sectors and bolster the supporting system for policy-making.

Key words: macro-regulation, shift of growth stages, policy space, expectation management