China Needs a Stronger Yuan and Fiscal Boost to Drive Near Term Growth: Goldman Sachs Goldman Sachs economists Kamakshya Trivedi and Hui Shan have reignited debate about China's economic trajectory with their recent analysis.
The country faces a bifurcated economy, marked by weak domestic demand and robust exports. Beijing must decide whether to prioritize nominal currency appreciation or targeted fiscal stimulus to drive growth.
The notion of a stronger yuan as a panacea for China's near term growth woes has been floated before, but this time it carries more weight due to escalating global trade tensions and the need to offset these headwinds.