China Calls for “Responsible Attitude” to the U.S. in Terms of Monetary Flexibility
The Chinese central bank governor, Zhou Xiaochuan, called for the United States on Tuesday to adopt a “responsible attitude” in the monetary to prevent capital flows to emerging economies, the agency Dow Jones.
At a time when financial markets expect further monetary easing measures by the U.S. Federal Reserve (Fed) to support the activity in the U.S., Zhou found that then it would be “inevitable that some emerging economies receive capital income is too heavy” Boao forum for the (south) on economic integration in Asia.
The U.S. monetary policy causes capital flows to emerging countries, where deposits are more profitable, and feeds inflation in those countries.
China fought with some success the rise in prices last year, but believes that the danger of a further acceleration is not completely eliminated, especially in case of rising oil prices or commodity.
Category: Business News
