| Author: | Song, Guoqing |
| Title: | Policy suggestions to curb currency deflation-reduction of interest rate and tax and assets restructure (original Chinese) |
| Journal: | Economy and Information (c)
1999 : 6, p.14-16 |
| Index terms: | DEFLATION CAPITAL MARKETS GEARING CHINA |
| Language: | chn |
| Abstract: | The current condition of capital market in China is very much in line with the assumption of debt-currency deflation theory no matter the capital market is capable of self-perfection and self-development or not. Policy suggestions are as follows. 1 The interest rate should be cut down when the true rate of interest is too high. 2 Tax should be adequately reduced under current conditions. It will do good to increase the self-owned capital of enterprises, which will further benefit the growth of bank loan. 3 capital restructure is an important aspect, which means to shut down some enterprises by means of bankruptcy and liquidation and to increase the self-owned capital of some enterprises. |
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