On June 16, 2021, China Finance 40 Forum (CF40) held a Young Economists Forum themed “Debt Leverage, Supply-Demand Circulation, and the Role of Money”.
To counter the COVID-19’s blow and prevent financial crises, countries around the world have introduced monetary stimulus at an unprecedented scale, giving rise to a new pattern of interplay among money supply, economic growth and inflation. The post-pandemic world is witnessing mounting debt risks, with debt accumulating at a more rapid pace and in new forms. However, limited by oversimplied analysis of money and debt, existing economic theories have failed to provide a sound framework for understanding these emerging issues, raising the need for new analytical frameworks.
Under the new circumstances, how to properly understand the relationship among money supply, debt and economic growth in the long run? How exactly does the interaction between the financial sector and the real economy work? How to give full play to the “twin-pillar” regulatory framework to achieve both monetary and financial stability?
The seminar brought together senior policymakers and leading financial practitioners to probe into these important questions. The discussion was based on a CF40 research project led by Li Bin, Director-General of the Macroprudential Policy Bureau at the People’s Bank of China (PBC), and Wu Ge, Chief Economist and Assistant President at Changjiang Securities. The two authors first introduced their research findings on the topical issues, which was followed by comments from Wang Yi, Vice President of China Everbright Group, and Zhang Xiaojing, Director of the Institute of Finance and Banking at the Chinese Academy of Social Sciences (CASS).
Miao Yanliang, Chief Economist at the Investment Center of the State Administration of Foreign Exchange (SAFE), moderated the roundtable.
