In recent years, one of the biggest problems facing China has been the lack of domestic demand, and one of the main causes of the lack of domestic demand is residentsBalance sheetShocked. So, what is a residentBalance sheetWhat about the shock?In simple terms, it refers to both the assets and liabilities of a household. Assets include salary incomeInterest incomeand loan amounts, while liabilities include consumer spending, home buying expenses, and loan repayment expenses. When a resident's expenses increase, liabilities increase, savings decrease, or household net worth decreasesBalance sheetwill be damaged, and this can pass through the residentsDebt-to-asset ratioto embody.
Over the past few years, residents of ChinaDebt-to-asset ratioThere has been a noticeable uptick. One of the reasons for this was the housing bubble, where many families bought properties, leading to an increase in debt. In addition, in recent yearsRoom rates**, which also slows down or even shrinks the growth of residents' assets. Another factor is aThe recession of the field, the impairment of ** assets made residentsBalance sheetShocked.
theseBalance sheetThe shock led to a decline in the level of household consumption, which reduced aggregate demand, afringEconomydevelopment. In order to repair the inhabitantsBalance sheetand stimulatedEconomyResuscitation, severalCriticalMeasures can be considered.
First, there is a need to boost the confidence of residents and businesses. The decline in the confidence index indicates that the confidence of consumers and entrepreneurs has been weakened, leading to a reluctance to spendInvestments。It is possible to increase positive expectations through policy guidance and provide favorable policies that exceed expectations. It takes the strength and determination of policies to convince consumers and entrepreneurs of the futureEconomywill pick up, thereby stimulating consumption andInvestments
Second, direct cash distributions or various forms of subsidies could be considered to stimulate consumption. No matter how good the policy is, it will not be effective if there is no consumer spending. In particular, stimulating the consumption of low-income people can play a good role. Some experts have calculated that giving consumption vouchers to low-income people can leverage new consumption and GDP. Similar policies can be pursued.
In addition, relaxation can also be consideredFinancial policyto reduce the cost of residents' debt. The burden on residents can be reduced by lowering deposit interest rates, lowering loan interest rates, and relaxing loan conditions, so as to encourage residents to consume moreInvestments
Finally, it needs to be strengthenedFinanceRegulate, preventAsset bubblesof the generation. Over the past few years, China's real estate market has been seen as wellare showing signs of bubbles. StrengthenFinanceRegulation, control of assets ** too quickly, can avoid residents due toInvestmentsbubblesBalance sheetImpact.
To sum up, solve the residentsBalance sheetThe problem of impact requires a variety of measures to stimulate household consumption andInvestments, boost the confidence of residents and enterprises, reduce the cost of residents' debt, and strengthenFinanceregulation, etc. It is only through the combined effect of these measures that the inhabitants can be rehabilitatedBalance sheet, stimulate domestic demand, promoteEconomyRecovery.