In 2015, the Chinese government announced that it would switch from relying on stimulating the economy through

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In 2015, the Chinese government announced that it would switch from relying on stimulating the economy through expansions in aggregate demand to relying on expansions in aggregate supply. According to a Chinese news site, the government had decided that “the best way to stimulate economic growth is to lower barriers to production, particularly through tax cuts.” What kind of tax cuts did the government likely have in mind? How would these tax cuts serve to increase aggregate supply?

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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