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A Digital Dose of Stimulation

Jul 10-2022   



Given the accumulated adverse effects of the pandemic on household income, Prof. Shen Yan of the NSD advocated immediate provision of both consumption coupons and cash allowances. She also suggested adopting digital technology to enhance informational transparency in the process. Deputy Director of PKU Institute of Digital Finance, Prof. Shen made the remarks in a recent media interview.

 

Since the outbreak of the pandemic, consumption coupons have been handed out across the country. Yet years’ restrictions on economic activities have drained the savings of many households, especially the low-income group. Hence Prof. Shen’s call for cash allowances to produce much-needed stimulation to the economy. To ensure fairness, digital technology can be deployed to enhance informational transparency through the use of digital wallets or social security cards, which have covered 95% of the population, she said. In terms of value, she suggested 500 yuan in cash to pair with 500-yuan worth of consumption coupons.

 

Though small and micro-sized enterprises are the focal point of financial policy support at the moment, many of them lack the motivation to apply for loans. Prof. Shen said that banks should improve big-data risk control capabilities to identify quality enterprises at lower costs; at the same time, a sound macro environment should be cultivated for the enterprises to develop and build confidence for the future. In addition, she urged the government to make more data accessible for banks to evaluate enterprises from more dimensions.

 

On the issue of ‘algorithmic discrimination’, Prof. Shen conceded that a sound governance framework for big data is yet to be erected. The way ahead is to promote algorithmic auditing, improve informational transparency, and craft a dispute-resolving mechanism. Ultimately, competition should be built up among platforms to root out discriminations against consumers.

 

Digital finance has been at the center of recent anti-monopoly discussions. Prof. Shen believed that what’s needed is balancing creativity and order. Amid the fourth Industrial Revolution, the platform economy affords China an opportunity to overtake competitors and take the lead; therefore, more market-based reforms should be undertaken to rid platforms of problems and aid them to thrive, said Prof. Shen.

 

A Digital Dose of Stimulation

Jul 10-2022   



Given the accumulated adverse effects of the pandemic on household income, Prof. Shen Yan of the NSD advocated immediate provision of both consumption coupons and cash allowances. She also suggested adopting digital technology to enhance informational transparency in the process. Deputy Director of PKU Institute of Digital Finance, Prof. Shen made the remarks in a recent media interview.

 

Since the outbreak of the pandemic, consumption coupons have been handed out across the country. Yet years’ restrictions on economic activities have drained the savings of many households, especially the low-income group. Hence Prof. Shen’s call for cash allowances to produce much-needed stimulation to the economy. To ensure fairness, digital technology can be deployed to enhance informational transparency through the use of digital wallets or social security cards, which have covered 95% of the population, she said. In terms of value, she suggested 500 yuan in cash to pair with 500-yuan worth of consumption coupons.

 

Though small and micro-sized enterprises are the focal point of financial policy support at the moment, many of them lack the motivation to apply for loans. Prof. Shen said that banks should improve big-data risk control capabilities to identify quality enterprises at lower costs; at the same time, a sound macro environment should be cultivated for the enterprises to develop and build confidence for the future. In addition, she urged the government to make more data accessible for banks to evaluate enterprises from more dimensions.

 

On the issue of ‘algorithmic discrimination’, Prof. Shen conceded that a sound governance framework for big data is yet to be erected. The way ahead is to promote algorithmic auditing, improve informational transparency, and craft a dispute-resolving mechanism. Ultimately, competition should be built up among platforms to root out discriminations against consumers.

 

Digital finance has been at the center of recent anti-monopoly discussions. Prof. Shen believed that what’s needed is balancing creativity and order. Amid the fourth Industrial Revolution, the platform economy affords China an opportunity to overtake competitors and take the lead; therefore, more market-based reforms should be undertaken to rid platforms of problems and aid them to thrive, said Prof. Shen.