China’s Great Financial Push
This chapter focuses on China’s 4 trillion yuan fiscal stimulus in 2008 and the effect on the Shadow Banking market. It describes the American mortgage crisis and the impact on the Chinese leadership’s analysis of its impact on the Chinese economy, China’s launch of a domestic stimulus package to avoid a downturn related to the mortgage crisis, and the unintended consequences of the stimulus package and relationship to local government financing. A brief discussion of the role of the banks in funding state and private enterprise in China is introduced.
KeywordsFinancial Crisis Fiscal Policy Bank Loan Chinese Communist Party Asian Financial Crisis
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