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Opinion: China needs to reconsider monetary easing to avoid a liquidity trap in which companies are hesitant to borrow

2 months ago
Sky Canaves
The key to avoiding the trap that often hits middle-income nations is productivity growth, not pouring more concrete," the author writes. "Government spending and investment by state firms crowd out private companies and consumers."
By Sky Canaves
Sky Canaves previously reported for The Wall Street Journal in Beijing and Hong Kong, where she covered media, culture, social issues, and legal affairs, and served as the founding editor and lead writer of the WSJ’s China Real Time site. Prior to becoming a journalist, Sky worked in the China corporate law practice of Baker & McKenzie, and she has also taught journalism and media law at the University of Hong Kong. She speaks Mandarin and has accumulated more than a decade's experience living, studying and working in China.

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