China should use counter-cyclical.......>

CHINA PRESS: China should use counter-cyclical adjustment tools more effectively

to maintain the stability of macroeconomic policy, China's Premier Li has said.

Li's comments, at a Nov 12 meeting with economists and entrepreneurs, were

reported by the China Securities Journal, whose report quoted the Premier as

saying that counter-cyclical adjustment was needed to maintain liquidity. On the

other hand, Li said China needed to avoid creating expectations around higher

inflation and leverage. Structural tools, rather than quantitative tools, were

more effective in managing the flow of funds by setting preconditions, which was

a better policy option than excessive force, Li said.