China Stimulus Hope Springs Eternal

China’s Politburo yesterday signaled its intent to provide further support to the Chinese economy by adopting a “moderately loose” monetary policy stance next year. That marks a shift from the current setting of “prudent” monetary policy that was adopted fourteen years ago. The shift comes in the face of continued economic weakness in China that has been led by the beleaguered real estate sector and compounded by rising trade restrictions led by the United States. The Politburo also telegraphed a “more proactive” fiscal policy stance next year, raising hopes that...