Liu Shijin responds to "10 trillion": Stimulation has a price

On October 29th, at a public forum held by the China Institute of New Urbanization at Tsinghua University, Liu Shijin said that the focus of his previous speech was not "10 trillion", but "in order to stabilize the economy, it is necessary to take short-term stimulus measures." Previously, in response to the downward pressure on our country's economy, Liu Shijin proposed to issue ultra-long-term government bonds to raise funds, and form an economic stimulus scale of no less than 10 trillion within two years. Liu Shijin further explained at today's forum that stimulus has a price. He used the method of stimulus and reform to spend money to build a new system to create indispensable institutional conditions and policy environment for high-quality and sustainable economic and social development in the medium and long term. Liu Shijin said that the main challenge facing the current macro economy is the increasing downward pressure on the level of aggregate demand. Recent data show that important indicators such as consumption, employment and finance have shown signs of significant slowdown or even contraction.