China leads in precision-guided central banking. Does it work? | The Economist

China leads in precision-guided central banking. Does it work?

It has helped during the pandemic but done less to cure deep economic problems

IN ECONOMICS TEXTBOOKS, central banks wield power by raising or lowering interest rates. That depiction, always a little simplistic, is now badly out of date. Since the financial crisis of 2007-09, and especially since the onset of the covid-19 pandemic, central bankers have dramatically expanded their arsenals.

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