Macroeconomic management in China

Abstract

China’s economy has expanded at a rapid pace over the past three decades, underpinned by a range of economic reforms. While many of these reforms have focused on the supply side of the economy, the authorities have employed a range of policies to manage aggregate demand and control the build-up of inflationary pressures and financial risks. The operation of macroeconomic policy in China differs from that typically used in developed economies, reflecting China’s particular institutional and economic environment. Macroeconomic policy is implemented in a coordinated manner with authorities using a range of monetary, fiscal and regulatory policy instruments to achieve economic objectives.

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