BEIJING – China’s “Central Economic Work Meeting,” comprising top government decision makers, recently chose to continue the expansionary fiscal and monetary policy launched in the last quarter of 2008. But it also called for greater emphasis on transforming China’s development pattern and rebalancing its economic structure.
The move thus signaled the start – well ahead of other countries – of China’s “exit” from crisis-driven economic policies. Indeed, China should accelerate its change of course. While expansionary policies have succeeded in ensuring a V-shape recession, their medium and long-term effects are worrisome.