The Supply Side Measures Gains obvious Effectiveness on Deleverage
Abstract：With the comparison on the changes of leverage ratio and the money supply as well as interest rate in the past period, this paper point out the closely relationship between deleverage and money supply control. Based on the slowdown of the macro- leverage ratio in 2017, we analysis the effects of supply side measures, such as the cut of excess industrial capacity and destocking, on the price hiking, profit and deleverage. To decrease the leverage ratio effectively in the future, we should take more supply side policies and promote the effectiveness of the economy with deepening reform as well as monetary control.
Keywords: Deleverage; Supply Side Reform; Monetary Control