“Dear Ben Bernanke, Please Do Our Job For Us”

PBOC gov Zhou Xiaochuan doesn’t quite understand that the Fed sets policy for the American economy, and the PBOC sets policy for the Chinese economy. Have a taste of this fine whine from his speech at the Boao Forum yesterday, as reported on the Ruetres Reuters wire:

11:05 03Apr12 RTRS-CHINA C.BANK CHIEF SAYS EMERGING ECONOMIES SUFFERING FROM LIQUIDITY RISKS DUE TO U.S. FED’S LOOSE POLICY

11:06 03Apr12 RTRS-CHINA’S C.BANK CHIEF SAYS FED SHOULD CONSIDER OTHER COUNTRIES’ INTERESTS WHEN SETTING POLICY

I’ve said it before, I’ll say it again: if China doesn’t want to be exposed to the Fed’s policy decisions, it should stop pegging its currency to the US dollar. This is Macro 101 stuff, but the PBOC governorship seems to have a massive problem understanding it.

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One Response to “Dear Ben Bernanke, Please Do Our Job For Us”

  1. sam says:

    And of course PBoC has been SO considerate of others’ economies when setting Yuan policy.

    Beating this soundbyte for strains on incredulity, however, i must say goes to Wen’s castigating the banks for monopolistic practices, excessive profits, and lack of lending to SMEs. I’m not sure where he is getting with this given the central government owns 70-80% of each of the big 4 banks.

    If you thought KRudd vs Gillard tit for tats, US Congress bickering, and the ejector seat of Japanese PM was political comedy, then kick back and enjoy the Beijing technocratic bureaucrat show!

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