how to use announcement effect to stabilize the economy and prevent risks
in the process of a country's economic development，how to guard against risks and avoid financial crises is an eternal theme. the history of financial crises over the past eight hundred years shows that while some crises are destined to happen，some potential crises can be avoided if managed properly in a timely manner.
during the rapid growth of the past four decades，china's economy has also encountered tempestuous storms，including the asian financial crisis in 1997-98，the global recession that started in the united states in 2008，the stock market crash and capital outflow in 2015-16，and the bond market default storm in 2018 and the shock of the covid-19 epidemic in since early 2020，but china finally managed to survive without a profound negative stock market and economic collapse similar to japan's circa 1990.
however，it is worth paying close attention to the fact that the chinese economy is currently facing triple pressures of shrinking demand，supply shocks，and weakening expectations，and we need to find ways to meet the challenges. be alert to major potential risks and learn how to respond to avoid a crisis. in particular，a deep understanding of the critical importance of well-designed policies to achieve a positive "announcement effect" is needed. at a critical juncture，there must be the determination and guts to implement policies with a powerful "announcement effect" to produce the "draghi moment" that can turn expectations around completely.
the "announcement effect": theoretical origin and practice in europe
