Fang Gang Felt That The Economy Was Too Cold To Be Honest And Invest.

Fang Gang, member of the central bank's monetary policy committee and President of the Comprehensive Development Research Institute, said at the second Dameisha China Innovation Forum held in Shenzhen on 13 July that the current Chinese economy is facing overcapacity.

This is a very typical downturn in the economic cycle. These are the sequelae of economic overheating in the past few years.

The basic role of macroeconomic policy is to counter cyclical regulation. When the economy is overheating, we should adopt a policy of restraint. When the economy is cold, we must adopt a stable policy and a policy of holding it up.

When they do not invest, the government does not have to feel shy about investing poorly.

The government's omission is also a problem at the moment. "No money has been spent on the government, and no investment has been made in its own projects. The government's savings have increased by a large margin.

From 2012 to 2014, the government's new savings amount is equivalent to 3% to 4% of GDP. If all of them are spent, the growth of GDP of 0.3% and 0.4% should always be there. "

For structural adjustment, Fang Gang thought it had a positive effect.

"In the long run, if our potential can be brought into full play, if we do the right thing to bring these potentials into full play, it will still be possible for the Chinese economy to grow for another ten years, twenty years, or even thirty years."

Fang Gang said.

Fang Gang pointed out that the basic problems of China's economy are manifested as overcapacity and deflation in the current stage. China's 44 consecutive month's production price index is negative. The last time it was 31 months in 90s, it is now 44 months.

All these problems are caused by overheating in the past period.

And we should fully understand the consequences of overheating.

Fang Gang has a positive attitude towards the government's macro regulation and control. "In emergency cases, it is necessary to use some administrative means.

If the economy is too cold, the government should do something in a right way, and strive to be in place.

When the economy is cold, when other economic entities do not invest, the government does not have to feel shy about investing poorly. "

Fang Gang said.