China must ‘liberate’ mind, embrace primary market treasury-bond purchases by central bank: finance ministry researcher
While the resumption of China’s central bank’s treasury-bond trade has stirred fierce debate over Beijing’s leaning towards quantitative easing, a prominent researcher affiliated with the Ministry of Finance has called for purchases in the primary market to foster better alignment of fiscal and monetary policies.
“We must liberate our minds in terms of operating restrictions in the primary and secondary markets, otherwise it will be difficult to achieve fiscal and financial coordination,” Liu Shangxi, head of the Chinese Academy of Fiscal Sciences which is affiliated to the Ministry of Finance, told a closed-door academic gathering on May 9.
Source: TRADE FINANCE
