Jan 13, 2021 08:56 PM (GMT+8) · EqualOcean
According to the central bank, sun Guofeng, director of the Monetary Policy Department of the central bank, wrote that keeping m2 and social finance growth "basically matched" with nominal GDP growth does not mean "completely equal.". The growth rate of M2 and social financing scale can be slightly higher or lower than the nominal economic growth rate according to the economic situation and the needs of macroeconomic governance, reflecting the counter cyclical adjustment; the nominal economic growth rate, potential output and economic growth target should be comprehensively considered. Basic matching is a long-term concept, not a short-term concept. In terms of operation, the basic matching should be done by year, not every quarter or even every month, so as to maintain the continuity, stability and sustainability of policies.