Who: Chinese central bank advisers and other economists.
What: Leading Chinese economists expressed their concern over U.S. Federal Reserve’s decision to print more dollars in a bid to boost the ailing American economy. “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,” Xia Bin wrote in a commentary piece in the Financial News, a Chinese-language newspaper run by the central bank.
Where: The statements were issued in Beijing, the Chinese capital.
When: The opinions of influential Chinese monetary advisers were published on Thursday, 4 November. The Federal Reserve announced new monetary initiatives on Wednesday, 3 November.
Why: U.S. Federal Reserve announced more plans to boost the struggling U.S. economy as it committed to buy $600 billion in government bonds by printing more U.S. dollars. Opponents of the new controversial measures argue printing billions of new dollars won’t help the situation and instead lead to inflation and hike of global commodity prices including oil, destabilising the recovery of American and world economies as a result.
How: Fed Chairman Ben Bernanke believes more government action is required to stimulate the economy that includes weakening of the U.S. dollar to boost exports. However, depreciation of the greenback has attracted criticism from world economists including Chinese who say it would translate into additional pressure on the Chinese yuan to appreciate and trigger currency wars. Analysts say it will be at least a few months, possibly several years, before the results of the U.S. Fed policies bear concrete results.