摘要
There is increasing inconsistency between China’s economic fundamentals and the monetary policy,which appears to be too tight.There has been no major monetary policy change in China since May 18,2012 when the People’s Bank of China(PBoC)cut the required reserve ratio(RRR)by 50 basis points on May 18,2012.However,the Chinese economy and financial markets have experienced significant changes over the past two years.While the economy has slowed from 7.7 percent in 2012 to 7.4 percent in Q1 2014 and the risk of deflation has risen,the funding costs facing the enterprises have stayed at an
