Chinese scholar calls on Beijing to raise deficit ratio to 5%

Beijing: China needs to decisively ramp up fiscal spending so it can support an economy damaged by Western restrictions on trade, according to a Chinese scholar studying an unconventional school of economic thought.

Jia Genliang – the co-author of the new book Modern Monetary Theory in China and a professor at the Renmin University of China in Beijing – said China should lift its headline deficit ratio to above 5% of gross domestic product on average for the next decade.