great article and great comments in the comments section................From ZeroHedge
''The latest round of easing by the U.S. will increase inflationary
pressures for emerging-market economies, Mr. Chen said. "This
contributes to a monetary-policy dilemma for Chinese authorities",
he added. While markets have looked for signs of more forceful action
by China's leaders to rekindle growth, some officials attribute the government's caution to fears of reigniting inflation.
This confirms previous comments by the PBoC that "A domestic policy
may be optimal for the U.S. alone. However at the same time it is not
necessarily optimal for the world," he said at the time. "There is a conflict between the U.S. dollar's domestic role and its international settlement role."
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