“…Fiscal deficits were financed primarily by the central bank. At the end of 1993, the Chinese government announced its decision to 6 See, for example, Foley-Fisher, Ramcharan, and Yu (2016), Kandrac and Schlusche (2017), Rodnyansky and Darmouni (2017), Acharya et al (2019), Cloyne, Ferreira, and Surico (2020), and Chakraborty, Goldstein, and MacKinlay (2020).…”