THE BASIS POINT

China Approves $586b Stimulus Package Through 2010

Citing concerns about the ongoing global financial crisis, the Chinese government approved a 4 trillion yuan ($586b USD) economic stimulus package to include infrastructure and social welfare spending as well as investment directly in private businesses. They didn’t address this question of how the package would be funded. They also said that this active fiscal policy would be accompanied by a ‘moderately easy’ monetary policy.