- G20 Finance Chiefs Agreed to Curb Currency War
The G20 members “will towards more market-determined exchange-rate systems that reflect underlying economic fundamentals and refrain from competitive devaluation of currencies.”
- China's Top Think Tank Proposes CPI Target Hike
China’s CPI is likely to peak in the third quarter this year, and decline from the fourth quarter until the first half of next year, while go up again since the third quarter in 2011.
- Global Inflation to Occur in 2011: Bank of China
Emerging markets, especially, would see a substantial rise in inflationary pressure, which would make them further tighten monetary policy and strengthen the flexibility of exchange rate when necessary.
- The Renminbi Goes Forth
The dilemma that officials face is that the impact of a fall in exports as a result of RMB appreciation will be felt acutely and immediately, whereas the large welfare losses due to the evaporation of the value of China’s foreign-exchange reserves will be borne by society as a whole – but not immediately.