Chinese Assistant Finance Minister warned the emerging economies: “be careful about the imported inflation”

zhengxiaosong

According to the news report from the Boaoforum.org, today (April 8), in a sub-forum of the Boao Forum for Asia under the theme of “global recovery and the common development of Asian”, Chinese Assistant Finance Minister Zheng Xiaosong alarmed to the emerging economies in Asia: “to be careful about the imported inflation”.

Zheng Xiaosong analysed that since last year the world’s major developed countries, especially the reserve currency issuing countries have implemented of a new round of quantitative easing monetary policy which has played a certain role in the stability of financial markets, but is worth noting that this round of quantitative easing monetary policy is not subject to scale and time constraints, and in the long-term it will bring in a lot of excess liquidity on the financial markets which will inevitably lead to disorder flow of the international cross-border capital. Thus it not only will affect the stability of financial markets in the region (Asia), result in commodity price fluctuations, but also make the Asian countries, particularly emerging market countries face more imported inflationary pressures, which also leads to asset bubbles . 

Reference link: http://www.boaoforum.org/cgzxbd/7681.jhtml

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