
Chinese-style "reinflation": How? What's the strategy?

Next year's economy and policies will focus on the issue of inflation. China's style of re-inflation mainly relies on supply and demand, real estate, and exports. However, due to employment pressure and uncertainty, the activation of demand is crucial. In addition to the expansion of fiscal and monetary aggregates, it is also important to create new demand, such as new infrastructure projects. Taking history as a guide, loose monetary policy, active fiscal policy, and supply-side policies are equally important. Currently, the performance of inflation is similar to that of 1998, with the high-tech sector leading the way and the consumer sector relatively lagging behind. More incremental policies need to be introduced next year.
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