Vorstellungen » The global financial crisi

The global financial crisis Zach Werenski Youth Jersey , developed countries slow economic recovery, the United States and high unemployment. China's exchange rate policy has become a must have in various international debate topic. However, with the implementation of the Federal Reserve for the second time quantitative easing, the dollar depreciated, a global exchange rate seems to have quietly started the war, while China and the RMB was pushed to the vortex center.

China to maintain low interest rates are very dangerous too long

Although China can maintain its existing exchange rate policy, will gradually adjust their own currency, but this is not the quantitative easing environment Hengliangdeshi the only criteria. Can China in the management of exchange rate adjustments Sergei Bobrovsky Youth Jersey , to avoid the negative effects imposed quantitative easing - to avoid the spread of global liquidity potential asset bubble, the mismatch of resources and financial turbulence, is the true test.

Only from the point of the RMB exchange rate, the RMB exchange rate as the root cause of global imbalances is certainly very difficult to set up, China has reason and may refuse to increasingly intense international sharp appreciation of the renminbi requirements.

Although the United States House of Representatives recently passed a trade protectionism against China's exchange rate motion, however, also need to the Senate, and signed by the President after the coordination. For now Artemi Panarin Youth Jersey , the bill to final passage of the possibility of legislation is still relatively small. Even if passed, there is a certain monitoring time and not immediately bring about retaliatory tariffs. However, resist the appreciation of the nominal exchange rate is just one aspect of this game only.

In fact, no matter whether China or other countries willing to adjust the nominal exchange rate, under the quantitative easing in the Fed, the real exchange rate adjustment will occur, but also is a way we do not want to see happen.

Of course, the Fed worried about growth because of weakness and high unemployment are prepared to continue to increase the size of its purchase of bonds Seth Jones Youth Jersey , that is to increase the size of printing money to prevent deflation. However, because the dollar is an international reserve currency, the United States be free to control its money supply, while other countries will have to "be adjusted" "was appreciated." Some other developed countries, including Japan, have also been prepared following the Fed or the beginning of quantitative easing.

QE consequences? It is not effective in stimulating economic growth in the United States and developed countries, there are a lot of controversy, even within the Fed there are differences. However Anthony Duclair Womens Jersey , one thing is clear, global monetary policy would remain accommodative for longer, interest rates will remain at low levels for longer. In addition, the almost certain that a flood of liquidity will flock to low-risk, high return areas, including China, emerging markets bear the brunt.

The face of strong capital flows and the appreciation pressure on some emerging market countries such as Brazil, Thailand Josh Anderson Womens Jersey , capital controls have been building high dams, even in