U.S. dollar printing is huge risk China Central bank adviser
| U.S. dollar printing is huge risk China Central bank adviser | |
| Published on 11-05-2010 | Email To Friend Print Version |
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Source: Reuters Unbridled printing of dollars is the biggest risk to the global economy, an adviser to the Chinese central bank said in comments published on Thursday, a day after the Federal Reserve unveiled a new round of monetary easing.China must set up a firewall via currency policy and capital controls to cushion itself from external shocks, Xia Bin said in a commentary piece in the Financial News, a Chinese-language newspaper managed by the central bank. “As long as the world exercises no restraint in issuing global currencies such as the dollar — and this is not easy — then the occurrence of another crisis is inevitable, as quite a few wise Westerners lament,” he said. As an academic adviser on the central bank’s monetary policy committee, Xia does not have decision-making power but does provide input to the policy-making process. The Federal Reserve launched a fresh effort on Wednesday to support the struggling U.S. economy, committing to buy $600 billion in government bonds despite concerns the programme could do more harm than good. |
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