Abstract: The main challenge facing the current economy is the lack of effective demand. If we can solve this key issue, many other issues could be solved easily. Increasing aggregate effective demand, whether by expanding consumption or investment demand, ultimately requires credit growth, which mainly relies on measures in three aspects: the first is to expand government borrowing to a minimum of 11 trillion yuan to increase expenditure; the second is to ease monetary policy enough to achieve a growth rate of more than 11% for social financing; the third is to stabilize the real estate market through both supply- and demandside measures.
