Public Policy Yifan Cai John Bateman Myslinski

Asia China China Background: Shadow-Banking Boom “Comprehensively Deepening Reforms” Japan Japan Background: “Lost two Decades” Abenomics And the “Three Arrows”

China 4 Trillion Yuan Economic Stimulus in 2008

Chinese Government Before 2014, Only standard for promotion: GDP growth rate

Government Debt in China Wuxi Consequence: Shadow Banking

What is Shadow Banking ? There are people in the market has money There are people in the market has money There are people in the market want money There are people in the market want money There are trust companies turn the money into WMP at a higher interest rate. There are trust companies turn the money into WMP at a higher interest rate.

Structural Reforms Towards More Inclusive Growth New-Style Urbanization Social Safety Net Advancing Health Care Reform High-Quality Education Agricultural Modernization And Food Growth Further Opening up Financial System Fiscal Responsibility of Local Authorities

Japan And Its Lost Two Decades economist Paul Krugman explained, "Japan's banks lent more, with less regard for quality of the borrower, than anyone else's. In so doing they helped inflate the bubble economy to grotesque proportions."

Abenomics And “Three Arrows” Fiscal consolidation More Aggressive monetary easing by the Bank of Japan Structural Reforms

First Arrow: Fiscal Consolidation Consumption tax rate was increased from 5% to 8% in April Cut the primary deficit of the Central and local government in half between FY2010 and FY2015 Achieve a fiscal surplus by FY2020

Second Arrow: Aggressive Monetary Policy BOJ set the price stability target at 2% (year-on-year rate of change in the costumer price index) Buying long-term government bonds and increasing the monetary base Prices started to rise (but largely due to the oil prices)

Third Arrow: Structure Reform Encouraged higher wages Raised taxes Encouraged female participation in the labor force Considered postponing the retirement age Regional medical care system for old people Restructure government expenditure: more R&D and education Improved access to financing for SMEs Agriculture reforms Home Town Investment Trust Funds

European Public Policy Greece European Central Falling Oil Prices GDP growth (annul %) Source: World Bank

Greece Alexis Tsipras Good Disastrous Temporary Fix

European Central Large quantitative easing program in reaction so slow growth Large quantitative easing program in reaction so slow growth

Falling Oil Prices Cheap oil and their effect on European inflation

Bibliography system-and-how-it-could-make-a-slowdown-even-uglier/ system-and-how-it-could-make-a-slowdown-even-uglier/ shtml shtml s.reform.japan.pdf s.reform.japan.pdf