One size fits all type of yuan policy is not science

 RMB policy is not one size fits all type of scientific
Posted on Monday, February 9, 2009 at 11:29 pm
moment to Lehman Brothers, according to U.S. News to cut interest rates two or three PCT, and at another insight into the RMB will deflation rainy day, and sometimes also the exchange rate for trade retaliation to fight the battle, a time to take care of the vast land of the descendants have a job to ensure that export, and sometimes have to bear in a basket of goods in order to hook promoted as the only such multi-currency mm is precisely the goal of monetary policy is not Xue Zhaofeng

Professor Zhang Wuchang times since 2003 and has written articles on the RMB, there are two staggered parallel themes: first, against the RMB appreciation, the second is to advocate issuing RMB is self-contradictory, no matter how many times can not be justified explanation. If you want to no longer possible at the same time with the against RMB appreciation (see ) hook, then in the past few years is bound to generate domestic inflationary consequences (see RMB and never return, then China does not produce inflation. But this move effectively if so, the Chinese simply do not work, as long as India launched the RMB and then put it to, you can enjoy prosperity. If more printed money can be introduced to settle the matter, which country will not be inflation (see dollars to exchange the RMB to get people when more than plug a few pieces of hard to give him the RMB on it, no one will refuse, but at what price? What are the consequences?
Fourth, if only to uphold the idea of the second half, the note-issuing (fiat money) is not anchored. Even if the note-issuing fanciful to think that no anchor person, the money supply can not do whatever they want. hair too much it will depreciate, which is the natural constraint. in fact, often the meaning of legal tender only from the gold standard or silver standard, there does not mean economic common sense.
Fifth, , just stare at those items more easily mislead monetary policy. (2) the central bank to adjust the price level according to the difficulty of money in circulation, is difficult to grasp between the goals and challenges. It's like how people raise a good child asked, you said the key is to raise the baby as well. (3) Select resolve this difficulty. special emphasis on not to be a fixed price to the world's supply and marketing of those goods (see the content written into the Unlike the central bank monetary problems

as honey water to stabilize the exchange rate, exchange rate policy introduced inflation

paradox of monetary policy is clear when the