Likonomics in the foreign press

0 Comment(s)Print E-mail, July 24, 2013
Adjust font size:

The Chinese Premier Li Keqiang's economic policy has been dubbed 'Likonomics' since three Barclays Capital economists first used the June 27. Like "Thatcherism" and "Reaganomics" before it, "Likonomics" has become trendy shorthand for discussing the possible implications of China's new economic program. Below, we've gathered the analyses of some such publications.

Economist on July 1 explained Likonomics as a policy of no stimuli, deleveraging and structural reform. Li has argued that "China had little scope for stimulus or government-directed investment," mostly because Beijing's post-crisis stimulus – a four trillion-yuan package – was discredited for being too big and causing subsequent inflation. Likewise, leveraging has been denied for the same reasons, while structural reform, as Li has said, has always been "the biggest dividend" for China.

Wall Street Journal. In the online version of Market Watch, the Journal said China's economy would suffer slowed quarterly growth as low as 3 percent as part of what's known as a "temporary hard-landing." In the long-run, however, Likonomics will produce "for short-term pain leading to long-term gain."

Reuters quoted China Central Television (CCTV)'s report that the Chinese government would "will keep policy stable and make macro-controls more targeted and forward-looking to stabilize economic growth." In a July 18 report, Reuters also reported that analysts said the temporary slowdown in China would push the Chinese government "to quicken reforms to take up the economic slack, rather than slow them down."

Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from