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China should slow government-dominated........>

CHINA
CHINA: China should slow government-dominated investment to curb local
government debt, Bai Chongen, an academic and a member of the PBOC's Monetary
Policy Committee, said Tuesday during an economic forum sponsored by Caijing
magazine. The effectiveness of fiscal stimulation is decreasing, dragging down
overall economic efficiency and increasing debt levels in the process, Bai
noted. The current situation of balanced cross-border capital flows and a stable
yuan exchange rate have provided a chance for monetary policy to "break the
cycle," Bai argued, adding that he hoped the government's foreign exchange rate
policy could be more flexible, which he said would help improve the autonomy of
monetary policy.

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