Therefore, the most important issue in considering the economic outlook is whether the increase in private demand can overcome the downward pressures from fiscal tightening and whether it is possible, as a result, to lead the economy on to a path of selfsustained recovery. As I mentioned earlier, economic recovery has been recently gaining strength.
Zhou Xiaochuan: Some considerations in the study of monetary policy transmission Speech by Mr Zhou Xiaochuan, Governor of the People’s Bank of China, Beijing, 13 April 2004.