It is innovative, I'll give them that:
China Plays the Long Game in Shift to ‘Cross-Cyclical’ StrategyThe Chinese Communist Party has a new catchphrase to guide its economic policy, a “cross-cyclical” approach that government advisers say means taking action sooner, in smaller steps and with a longer time frame in mind.
It’s a departure from counter-cyclical policy, which is when central banks and governments add stimulus to spur a slowing economy -- like cutting interest rates or taxes and boosting infrastructure investment -- and tighten when growth starts accelerating.
Officials haven’t outlined what “cross-cyclical” policy entails, but several economists with links to the government say the objective is to take action that’s preemptive and moderate in order to smooth out fluctuations in growth.
It implies keeping restrictions in place in some areas, while easing up in others. That was highlighted recently by the central bank cutting the reserve requirement ratio for banks to boost liquidity, but tightening property restrictions to rein in prices.
Here’s a summary of what can be expected from the policy shift:
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