Assessment of China's macroeconomic situation: relevance of the zero interest rate and quantitative easing polices

Using the data available until mid-February, 2009, the article examines China's macroeconomic situation and looks at the prospect of China's economy. It analyzes the zero interest rate and quantitative easing policies in terms of relevant empirical evidences in Japan and the prospect of using this kind of policy in the US. It argues that a zero interest rate and quantitative easing policies are not optimal choices for China.