Can China’s stimulus blitz fix its flagging economy?

By Sambit Bhattacharyya, Professor of Economics, University of Sussex Business School, University of Sussex

Pan Gongsheng, the governor of China’s central bank, announced a raft of measures on September 24 aimed at boosting the country’s flagging economy. The move, which came a week before the 75th anniversary of communist party rule, was made in response to concerns that China could miss its own 5% annual growth target.

The stimulus package included a 0.5 percentage point cut in the amount of cash reserves that commercial banks are required to have as deposits with…

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