Showing posts with label stimulus. Show all posts
Showing posts with label stimulus. Show all posts

Monday, October 1, 2012

China and The Traffic Jam Economy

The South China Morning Post reports, millions of Chinese commuters stuck in the longest traffic jam ever as a result of making toll roads free for the week to stimulate the weakened Chinese macroeconomic economy.

"A bid by authorities to stimulate the economy by suspending road tolls for the "golden week" holiday brought huge tailbacks across the mainland yesterday as almost 86 million travelers took to the roads. That's 13.3 per cent more than on the first day of the National Day holiday last year." 

"One traveller blogged that he could only move 200 metres in an hour on the Zhengzhou to Shijiazhuang expressway in Henan province. Others said the queue of cars on the Guangzhou to Shenzhen expressway was 40 kilometres long. All roads leading out of Guangdong were jammed, with cars moving at about a kilometre an hour in front of some toll gates. Provincial traffic-management authorities estimated traffic on expressways would increase by 40 to 80 per cent compared with the same period last year, the Shenzhen Special Zone Daily reported. The People's Daily reported dozens of accidents on 24 highways across the mainland, further aggravating the congestion."


Friday, September 28, 2012

Chinese yuan appreciates in the currency markets




The Chinese yuan climbed to a 19-year high this week on currency speculation in the FX markets.

The financial market bet is that China will step up and come to the aid of slumping domestic macroeconomic growth with a new stimulus program.

Tuesday, July 17, 2012

China's railroad macroeconomic model





China’s railway infrastructure investment may double in the second half of this year from the first six months, aiding efforts to reverse a slowdown in the world’s second-biggest economy.

Full-year spending will be 448.3 billion yuan ($70.3 billion), according to a statement dated July 6 on the website of the National Development and Reform Commission’s Anhui branch. The document indicates a 9 percent increase from a previous plan of 411.3 billion yuan. Spending was 148.7 billion yuan in the first half.

Bloomberg