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Posted: Sun 13:03, 20 Mar 2011 Post subject: Father of Euro Mundell - China will dip further af |
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4 trillion for the government investment program, but evaluation Mondale: , but should do more.
Mundell further suggested that in order to stimulate domestic demand to promote economic growth, the Chinese government to release to the general public 1 trillion of consumer coupons. He also suggested the U.S. government paid 500 billion U.S. dollars can also be vouchers to stimulate the economy.
Thus, Mundell suggested the vouchers need to set the validity period of 3 months,[link widoczny dla zalogowanych], compared to a quarter of the GDP value, a larger proportion of effective demand was 14.28%. Assuming 1 trillion of consumer stimulation does not achieve the desired results, you can then implement a quarter. In his view, Europe and the United States worry that the practice of issuing coupons will shake consumer confidence in the people, if China can succeed, it will introduce similar measures for other countries, example.
in yesterday's forum, from the Shenzhen Institute of Business and Professor Yang's major economies around the world development trend of the future, especially in China and the U.S. economy turned down when they appear against Mundell advice. Faced with such a sensitive issue, Professor Mundell did not like some other economists, as evasive, but to their own
rebuild the international monetary system
the face of financial crisis, China's export enterprises in 2009 what should hibernate, winter swimming,[link widoczny dla zalogowanych], or winter hunting? Mundell said that China's future there will be no concerns about inflation, and deflation will become more apparent. The Chinese government this year he has holdings in the international market of foreign exchange assets of $ 500,000,000,000 (of which, mainly U.S. Treasuries) practice disagree, he believes these funds should be used more in the domestic real economy.
to the national economic pulse:
Mundell believes that the global exchange rate stability is the order of the global financial market returns premise, despite the economic crisis broke out from the U.S. dollar's depreciation pressure enormous, but the U.S. national credit remains strong, whether it is the euro, the yen or the yuan are difficult for the dollar's position in the global economy pose a challenge.
As for the Japanese economy, he is relatively pessimistic view: will not be soon.
by Goldman Sachs earlier this year represented a substantial overseas investment bank was empty to sing the Chinese economy that China's GDP growth next year will be significantly slowed to 6%. But Mundell believes that the Chinese economy,[link widoczny dla zalogowanych], the 2009 economic growth will not fall to be so obvious, but it does have two years of slow growth process. In addition, China's real estate market correction will continue for a year and a half hours or so, China's housing prices are still too high, real estate, commercial real estate demand, especially in the sharp decline in demand, the entire real estate industry profits decline, which dragged down the new project construction slowdown in the performance of the real estate slump will continue until at least the first half of 2010.
prescription for economic decline:
addition, Mundell also after last year's corporate income tax reform put forward different views of the New Deal. He said that the reformed corporate income tax collection rate means equality for all enterprises is correct, but a unified 25% tax rate for foreign-funded enterprises is still to increase the threshold,[link widoczny dla zalogowanych], reduced the majority of the international competitiveness of export enterprises. If you want to stimulate export growth, the correct approach is to a unified tax rate down. He faces Germany in the last century, when the recession tax cuts as an example (when Germany took the lead to reduced corporate income tax from 38.7% to 15%, allowing the German economy out of recession), that China and the United States should as soon as possible their corporate income tax rate from the current 35% to 15%.
Mondale to successfully design the euro as the
China may bring up the rear
significant tax relief for businesses
pegs made big tax cuts coupons
Mundell also said that China's fiscal revenue abundant, when necessary, may have to adopt a more radical approach, ? it is reasonable to challenge me.
the United States first reverse
his view,[link widoczny dla zalogowanych], the reconstruction of two-step international monetary system can be: first, to link the yuan to the dollar, and then be linked to the euro and the dollar. He also hoped that the RMB to an alliance with the Japanese yen. He even proposed the establishment of multilateral monetary union plan. The ultimate goal of all these programs is to establish a system similar to the Bretton Woods dollar-centered international monetary system.
Mundell also said that China's fiscal revenue abundant, when necessary, may have to adopt a more radical approach, ? it is reasonable to challenge me.
the China nearly a thousand business people attended as observers. China's economy will reverse, when the U.S. economic recovery in crisis are there any opportunities for Chinese companies and so on currently outstanding, many entrepreneurs are the future prospects of China's economic loss. In this regard, Professor Mundell brought him in today's global and profound analysis of the Chinese economy, and come up with a set to save the financial system, save the economic recession of the program.
Some scholars believe that the current U.S. economy has been insufficient to support the U.S. position, but Mondale said that the current United States remains the world's largest economy, the Chinese economy despite the recent 20 years maintained a growth rate of over 10%,[link widoczny dla zalogowanych], but estimates total economic output by 2040 to be with the U.S. close. In the current financial crisis, China's immune derail the economic, the Chinese government should actively respond to and prevent further economic decline.
hair trillion coupons pull of domestic demand
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