China’s central bank announced it has begun to reduce coronavirus-related stimulus early – a decision that may be far more relevant for policy evolution in developed economies than presently perceived. The move is part of Chinese policymakers’ renewed focus on risk control (see related blog on China), which reflects a belief that in order to sustain high quality growth, market discipline must be brought to bear on the weakest parts of the economy, including some state-owned enterprises, local government financing vehicles, and over-leveraged property developers. Indeed, the People’s Bank of China (PBOC) – mindful of ... (full story)