China's 2024 economic stimulus

The risk factors named in the 2021 Draft Scenario for Amendments to the Budget Law of Georgia include: risk of pandemic exacerbation; a sharp decline in revenues of the tourism sector; despite the increase in trade turnover, the increase in supply costs, which is explained by the world's ongoing inflationary processes; increased global debt and changes in global consumer behavior are also mentioned. In a pandemic, it is especially difficult to stimulate the economy in low- and middle-income countries. The article discusses global issues and potential solutions. The economy must be recovered as quickly as possible. Government actions create an economic incentive to encourage the private sector. Economic stimulus is based on the analogy of biological stimulus and response processes. Keywords: Economic stimulus, recession, stimulus, investment, economic stimulus plans, Rickard equivalence.

The effectiveness of government policies and economic stimuli during the 2007 financial crisis and the COVID-19 pandemic are compared in this study. While the 2007 financial crisis started in the real estate market and spread through the contagion effect to other sectors, the pandemic halted the all sectors of the global economy simultaneously. In the United States, where the social safety net is not as strong as other advanced economies, the unemployment rate skyrocketed and many families lost income. The federal government countered with various relief packages, which have been, unlike the rounds of quantitative easing prevalent after the 2007 financial crisis, direct payments to households and businesses. The Agent Instability Indicator and default elasticity coefficient are used to quantitatively assess the financial instability and default risk of subgroups of United States households classified by percentile of income and net worth. It turns out that the financial instability level of the United States household during the pandemic has not been as high as that during the 2007 crisis and the Great Recession. It is concluded that the direct handout of cash—so called helicopter money—is more effective at preventing financial collapse and stabilizing the economy than quantitative easing through asset purchase.

This chapter shows how the content of market reforms in public utilities varies depending on who adopts these policies. Reformers can be either right-wing governments of true believers in the market as the best way of allocating resources or populists who pragmatically converted to the market creed under financial pressure. Which sort of politicians implement privatization reforms has a crucial effect on policy content due to their different constituencies, prior beliefs about state intervention, and allied experts. These factors reinforce each other in producing different preferences for the ideal degree of government control of private investors and for the distributive effects expected from privatization. As a result, the regulatory content of reforms generates different beneficiaries and institutional choices depending on the partisan identity of the reformers. When right-wing true believers are in charge, we should expect reforms to be market-conforming, and when pragmatic populist converts adopt reforms, we should expect them to be market-controlling. This partisan variation in policy content has been ignored by most studies of market reforms in Latin America due to the less publicly salient character of this dimension of policy making as compared with initial policy adoption. Partisanship: Constituencies, Ideas, and Experts Partisan preferences about policy content are based on constituencies, ideological legacies, and allied technocrats. Partisan constituencies generate distributive demands, ideological legacies provide a lens with which to interpret the distributive consequences of policy choices under new circumstances, and politicians' linkages to allied technocrats define to whom they will delegate technically complex choices based on a shared understanding of distributive goals.

The healthcare industry is one of the fastest-growing sectors globally, and its expansion has implications for a wide range of industries, including the real estate sector. In China, the real estate market has been closely linked with the healthcare industry due to the growing demand for healthcare facilities, particularly in urban areas.This research aims to explore the development of the China real estate market in the future of the healthcare industry. It will examine the current state of the healthcare industry and the key trends driving its growth in China, as well as the role of real estate in facilitating this growth. The research will draw on a range of data sources, including government reports, industry publications, and academic literature, to provide a comprehensive overview of the current state of the healthcare industry and its future trajectory. The research will also include case studies of successful healthcare and real estate development projects in China to provide a practical perspective on the opportunities and challenges in this space.The findings of this research will have implications for a wide range of stakeholders, including real estate developers, investors, and policymakers. By better understanding the link between the healthcare industry and the real estate sector in China, stakeholders can make more informed decisions regarding investment and development opportunities in this rapidly growing industry.Overall, this research will contribute to a better understanding of the complex interplay between the healthcare industry and the real estate market in China and will provide insights into the future of these industries in the country

ABSTRACTThis paper investigates the stimulative effects of transfer payments on macroeconomic aggregates using impulse response functions, forecast error variance decompositions, and spending multipliers in state‐dependent time series econometric models. It is shown that under symmetric response assumptions, positive transfer payment impulses lead to positive effects on gross domestic product, personal income and personal consumption. However, when an asymmetry linked to economic conditions is used, it is found that transfer payment effects are asymmetric and have significant positive effects on macroeconomic variables during economic recessions but are not very stimulative during economic expansions. A deeper analysis shows that the stimulus effects during economic recessions results primarily from the recent special programs undertaken during the Great Recession and the COVID‐19 recession. These results indicate that policy which uses transfer payments as economic stimulus for the economy during expansionary economic conditions will not see much benefit. Furthermore, transfer payment policy expansions during recessionary economic conditions do not offer much stimulus except when the programs are unusually large as seen during the Great Recession and the COVID recession. Results for forecast error variance decompositions and spending multipliers reinforce these findings. Transfer payment programs are often motivated by both the benefits to recipients, and the stimulative benefit to the economy. These results show that, outside of the periods where extraordinary transfer payment expansions occur, the economic stimulus effects of transfer payment programs are small and that transfer payments should only be motivated by the benefits to the recipients.

Waqf represents religious commitment, economic stimulus, philanthropist mechanism, and also social unity thrust or force in any Muslim society in a Muslim or non Muslim country. This paper evaluates a special co-operative social philanthropist scheme known as infaq lil-waqf which provides opportunities for co-operative society to contribute employing the concept of waqf or Islamic endowment. The most important goal of the waqf product is to raise fund for projects that will enhance socio-economic status of cooperative as well as the general members of society. To achieve this goal, a special unit known as infaq lil waqf was established under National Co-Operative Movement of Malaysia (Angkasa). The participation from the co-operative society in Malaysia is very impressive. It has ventured into widen horizon of co-operative activities including business, education, welfare, health, real estate and Rest and Recreation Area. The benefit reaches beyond the members of the cooperative but the general public, Muslim and non Muslim alike. The Annual Report for Angkasa records a very promising and encouraging result of the scheme. As it is successful at national level, the scheme is also potential to be expanded at international level.

On February 13, 2009, the US House and Senate passed a new economic stimulus plan which amounted to USD787 billion. This economic incentive plan, of which 35% was in tax cuts and 65% went into government investment, was hailed by the Obama administration as an important milestone that would lead the US to economic recovery and resulted in a powerful ripple effect. The US economic stimulus package immediately aroused widespread concern in the international community, not only because of the enormous size of the stimulus package, but also because of the blatant suggestion to “Buy American Provision” included in the stimulus program. This raised concerns over the rise of US trade protectionism. This provision imposed a general requirement that any public building or public works project funded by the new stimulus package must use only iron, steel and other manufactured goods produced in the United States, unless the federal government decide that purchasing iron, steel and other manufactured goods produced in the US would be damaging to public interest.

ABSTRACTIn response to the international financial crisis, China's actual utilization of foreign capital experienced a significant decline in 2009, followed by a rapid rebound that surpassed previous levels. This paper investigates the impact of the four‐trillion‐yuan stimulus package implemented by the Chinese government in 2008 on the dynamics of foreign investment. Our findings indicate that growth pressures drive local governments to actively utilize stimulus plans, thereby facilitating the entry of foreign firms. Mechanism tests reveal that the economic stimulus plan significantly encourages foreign entry through industrial land grants, while reductions in financing costs and tax incentives also play crucial roles. Furthermore, this study examines the heterogeneous effects of the economic stimulus plan on foreign firm entry, revealing a more pronounced impact on foreign investment from Hong Kong, Macao, and Taiwan (HMT FDI), as well as on foreign investment in coastal areas. This research offers a novel explanation for the dynamics of foreign investment in China from a macroeconomic policy perspective and contributes to the literature by evaluating the effectiveness of the economic stimulus package's implementation.

On January 19, 2023, the United States hit its debt ceiling, leading to a debt-ceiling crisis. US sovereign debt, for decades, was considered a risk-free investment, but the 2023 US debt ceiling crisis shocked the financial world. The COVID-19 pandemic has hung a heavy burden on public finances. Quarantined economic activity heavily affected state budget revenues all over the world. Before the Covid-19 crisis, there was the 2008 financial crisis with its famous outcomes, when economic stimulus was provided including state budget programs financed by sovereign debts. It was still pandemic circumstances when on 24 February 2022, Russia invaded Ukraine in an escalation of the Russo-Ukrainian War. In less than 20 years period the world has had three global-scale crises, but the deterioration social-economic picture is far less dramatic than it will be without state interventions. Nothing is free, it is an obvious and well-known economic axiom, so if the costs of these crises are not on the surface, it means that the problem is hidden somewhere and postponed in time. In a simplified picture we see that states' actions in the field of public finance aren’t rational. When revenues are decreasing, from a household point of view it is normal to turn on some austerity mode and live with less luxury, but different approaches are taken by the states when GDP growth and tax revenues are decreasing. The bright examples of these we saw during the 2008 financial crisis and the COVID-19 crisis. From an economic point of view, loans couldn’t be a source of prosperity. Moreover, sovereign credit puts on long-run burden on the real economy. Money is considered a sign of wealth and prosperity, but actually, in the fractional reserve banking system, it is not the same. For the creation of debt money in the modern credit system, we don’t need savings, we can create it simply from “thin air”. So, an increased volume of money and debt in the economy doesn’t mean prosperity, it means more burden on future generations and the economy at all. The real economy has to pay these debts in the long run future and there it will negatively affect welfare and prosperity. More Fiat money doesn’t create prosperity, prosperity is a result of economic growth and savings. Printing money without proportional economic growth or creating debt money without adequate savings, only exacerbates allocation of resources and wealth. So, money multiplier is not about wealth creation it’s about wealth allocations. Empirical pieces of evidence from the current century showed us that, a crisis is a signal, it is a communication instrument that should be considered correctly and with some scrutiny examinations about its origins and foundations. Tactical solutions can't give strategic outcomes. When empirical evidence shows that instruments used by the state to extinguish crises create much more scaled ones, it’s time for rethinking and structural reforms.

The main effective indicator of the use of natural resources is the natural capacity, which is determined by the volume of natural resources used and the final products. There are two types (levels) of natural capacity: Macro level - the level of the whole economy and the level of productivity. It is argued that the measurement of the rate of naturalness in dynamics may become one of the main criteria for the transition to solid development. We can distinguish three mechanisms for the implementation of environmental-economic policies: direct regulation (state influence); Economic stimulus (market mechanisms); Mixed mechanisms. The experience of the world in 2010-2020 shows that it is impossible to solve environmental problems only through state intervention or market mechanisms. There are "principal" reasons for the failure of the market mechanism (external, low prices, etc.) and the ineffectiveness of state influence (subsidies, taxes, etc.) in the areas of environmental protection and use of natural resources. In this regard, a mixed mechanism is most acceptable, which allows the implementation of environmental-economic policies, etc., using state influence and market mechanisms. In view of all the above, the monograph "Fundamentals of the Ecological-Economic Theory of Integrated Natural Resource Management" discusses the necessary and necessary theoretical-practical issues, which knowledge will help PhD students, masters and researchers interested in the field of ecology and economics to take an active part in solving the tasks required for the safe operation of Georgia's energy and transport corridors at the modern level.

Corona Virus Disease 2019 (Covid-19) has had enough impact on the Indonesian economy that an economic stimulus is needed that still prioritizes the safety and welfare of the people. The National Economic Recovery Program (PEN) was initiated to be a measure implemented to prevent the impact of the pandemic from being more severe. The purpose of this study is to describe the influence of the Covid-19 pandemic on the national economy, especially the condition of the capital market in Indonesia, describe the National Economic Recovery Program (PEN) as an effort to secure and restore the Indonesian economy and the effect of the program on the capital market in Indonesia. This research methodology uses a qualitative approach with case study analysis. The results showed that the PEN Program succeeded in maintaining the impact of the Covid-19 pandemic so that Indonesia's economic conditions, although affected, were relatively less severe than other countries. PEN also provides a positive stimulus to the capital market in Indonesia as indicated by the increase in the JCI level along with the stages of PEN implementation to date.

In Pakistan, Bangladesh, Nepal, and Sri Lanka, the initial conditions were somewhat different from those in India. The countries were similar in their reliance on industrialization and faith in state intervention, significantly reinforced during a socialist interlude in the mid-1970s. Given the differences in initial conditions, the contents of policy were varied. After socialism ended, export-oriented industry tended to be textile oriented, whereas in the home market a variety of new combinations of foreign and domestic firms supplied goods and services embodying new technologies.

Sustainable entrepreneurship is seen today as a cultural and economic phenomenon. Sustainable entrepreneurship through the creation of new businesses that produce new products and services, and thereby ensure public needs, creates new jobs and contributes to the overall economic stimulus and community quality of life, balancing economic gain, regional development needs and environmental issues. Particular attention is given in recent years, to youth entrepreneurship, believing that young people have a lot of potential to create, develop and manage their own businesses, thereby contributing to a variety of social problems such as youth unemployment and unemployment in general, the involvement of anti-social activities, lack of employment to etc. Sustainable youth entrepreneurship is not analyzed much in scientific literature. In the article is defined sustainable youth entrepreneurship, discussed the importance of youth entrepreneurship for sustainability in the context of globalization, provided model of sustainable youth entrepreneurship toward energy security.

The purpose of the research is a set of theoretical and methodological, methodical and applied provisions concerning the analysis of economic development built on knowledge (KE) in the regions of Ukraine and also the determination of their integral estimation of KE development level. Methodology. The research methodology is based on a systematic approach, within which analysed KAM methodology (Knowledge Assessment Methodology) developed by the World Bank, identified key groups of indicators, such as the general condition of regional economies, economic stimulus and the characteristics of the institutional system, innovation, R&D sector and informational infrastructure. Considered the key factors that determine the position of knowledge in the regional development, namely: the business community, the scientific environment and the system of self-government, which forms regional policy in the light of specific conditions of areas. The possibility of this methodology’s application in the regional aspect is determined. For the research are chosen all regions of Ukraine. Exceptions are temporarily occupied territory. Accordingly, histograms of each of the key indicators’ groups are built that help to determine the level of development of a particular region. Results. Established that the symbiosis of innovative potential with the unique economic mechanisms is the catalysts that enhance the development of the regional knowledge economy. This analysis helps to see social and economic differences between the regions of Ukraine. Determined that the characteristic feature is an inadequate level of funding of science, which causes the slowdown of innovation activity in the regions because of links imbalance between industry and research industry sector. In most cases, the regions occupied similar positions in different groups of indicators. This allows us to conclude that the development of the knowledge economy components in the region is balanced. Noteworthy the fact that during analysing each of the indicators groups, the lion's share of regions was located around the median value, which points to the similarity of the condition of knowledge development in the economy of the regions. Highlighted powerful, competitive and potentially most perspective regions in terms of KE development in 2015. The practical implication of the results is findings and proposals for the formation of a regional knowledge economy development strategy. Found that the program support of the knowledge economy development should aim at the accelerated and harmonious growth of all triad elements education – science – manufacturing and their resulting components.

We study credit allocation across firms in developing economies with severe financial frictions. We illustrate the effects of financial frictions on credit allocation in a dynamic setting, and find that credit expansions during recessions can slow down or even reverse the gradual reallocation of resources from low to high productivity firms. We test the model empirically using China’s economic stimulus plan introduced in 2008, which triggered an unprecedented policy-driven credit expansion. Using private firm-level data we show that new credit was allocated disproportionately more towards state-owned, low-productivity firms than to privately-owned, high-productivity firms, with significant impact on the real economy.