Il Sole: China against the ultra expansive policy of Fed
05 November 2010
There are different motives: the new liquidity injected to the markets, together with the zero interest rates in the US will push the dollar down and create problems with exports in many countries, particularly in Far East.
China attacks the ultra expansive monetary policy of Fed and the proposals for the next G20 summit in Seoul. There are different motives: the new liquidity injected to the markets, together with the zero interest rates in the US will push the dollar down and create problems with exports in many countries, particularly in Far East. “The emerging countries must find ways to stop this speculative influx that could harm our economies,” said Xia Bin from Chinese central bank. “Chinese government is afraid that this speculative capital will raise the inflation, which has been the highest in 2 years.”
