It is important to deploy right skills in the face of economic bubble
World Insight with Tian Wei
The Boao Forum for Asia has entered the final day of this year's conference in southern China's Hainan Province. The meeting has attracted 2,000 delegates from 60 countries and regions. It has about 50 official sessions with CEO discussions and round table meetings.
On the sidelines of the forum, CGTN's Senior Correspondent Tian Wei interviewed former Chinese Central Bank Governor Zhou Xiaochuan, now Vice Chairman of the Boao Forum. He said when a country faces an economic bubble, it's important to deploy the right skills.
"Theoretically and practically, it is very difficult to completely avoid the economic bubble. That is when the bubble burst you need to learn the skills how to deal with that process, not to create too much panic and too much pains. We should try to avoid mistaking policy-making and to reduce those painful adjustments. It is a lot of skill in this regard," said Zhou.
When it comes to the detail of those skills, Zhou expressed that it is mainly in terms of fiscal policy and monetary policy, "the regulatory changes which can assist the macroeconomic adjustment rather than introduce big breaks into the bubble," he added.
"You need to consider those structural reforms, you need time to let the corporate sector, that is the financial sectors to repair the balance sheet. It can be quite a gradual process," Zhou explained.
(If you want to contribute and have specific expertise, please contact us at email@example.com)