April 20, 2014, Professor FENG Xingyuan, Deputy Director of Unirule, and Professor ZHANG Shuguang, President of Unirule Academic Committee, met with Professor Thomas J. Sargent, Nobel Prize Winner in economics, at “Influence・China” Spring Summit held by Time Weekly in Guangzhou. 
On the summit, Professor FENG Xingyuan talked on the macroeconomic trend of China and the development for private-owned enterprises. His talk focused on the impact of new urbanization on China’s economy, whether China needs large-scale economic stimulus policy, and how private-owned banks could change the financial industry. Professor ZHANG Shuguang gave a speech on Review on China’s Reform and Economic Development from the Perspective of Internet Finance. He emphasized the importance of monetary competition and the significance of Internet finance as an instrument to break government-led monetary monopoly. Professor Sargent talked on “The Evolution and Change of the Economy of the USA- Lessons for China”. 
(Professor FENG Xingyuan and Professor Thomas Sargent) 
(Professor ZHANG Shuguang and Professor Thomas Sargent) Professor FENG Xingyuan summarized the six characteristics of Likonomics, the economic policy of China’s Premier Mr. LI Keqiang, i.e. no bail-out, no leverage, no stimuli, reform, opening-up, and vitalization. The current rumor on “micro-stimuli” is not the essence of Likonomics, but it is the result of the policy. The reason is the deleveraging process now can only control the increase of financial debt by large margin. Therefore, the financial expansion is inevitable. As the central government tries to contain itself in spending and borrowing, local governments will still try to avoid excessive debts. And as a result, the “micro-stimuli” come into being. As a big state, investment in infrastructure is necessary, which accounts for financial spending to a certain extent, including investment spending. As now the government stressed the importance of public-private partnership, what really is behind the story is the fact that there is not enough fund for the government. The deleveraging policy is a result of both Mr. LI Keqiang’s governing feature and the fact that there is a lack of fund for governments. Besides, financial risks and non-performing debts are accumulating. The new urbanization can be a good instrument for Mr. LI Keqiang as the government can use it to push forward the supplementary role of the government in the future. Mr. LI Keqiang emphasized reforms which encompass not only structural reforms, something left behind by former Premier Mr. WEN Jiabao, but also incremental reforms such as interest rate liberalization, and capital marketization. Even though XI Jinping Politics features mixed institutions, but it still plays an important role in supporting Likonomics in order to guarantee its implementation. There are already several rural financial institutions as private banks. The five newly introduced private-owned banks are only operating within limited areas, which is in fact hindering general reforms. Totally 2 Pages,Now on the 1 Page 1 2 |
