Related News
Nobel economist forecasts China economy to grow at 7%-9%
By Lu Nengneng |
November 27, 2012, Tuesday
|
Online Edition
Online Edition
NOBEL-WINNING Canadian economist Robert Mundell expects China's economy to grow steadily in the next 10 years and a universal currency will emerge to stabilize the global monetary system.
Though it is a common view that China's economy will slow down in the future, the growth rate is likely to stay at 7 to 9 percent, instead of 9 to 11 percent in the past, Mundell said during an interview at the second Huatuo CEO Forum held in Shanghai recently.
He acknowledged China's remarkable resilience to the world's financial crisis and advised the Chinese government to spur consumption to offset shrinking exports and further ease its monetary policies by lowering the reserve requirement ratio for banks.
Mundell said the economic woes in the United States and Europe will dampen the demand for Chinese-made goods and reduce China's trading surplus. There would in turn cool down fixed-asset investment in the country.
The world needs more stimulus measures to avoid a recession, he said, but the US has already completed three rounds of quantitative easing and has come to a fiscal cliff, while Europe is struggling to solve its debt crisis.
China is the country that still has big room for policy adjustments and can contribute to establishing a new equilibrium in the international monetary system to avoid wild swings in exchange rates, Mundell said.
He proposed the idea of dollar-euro-yuan (DEY) economies serving as an anchor for a much-need world currency he called INTOR as they account for half of the world economy.
This new currency can be created for the International Monetary Fund system as a whole in which every member of the Fund would share and be endorsed at a new Bretton-Woods meeting of all member countries, which he said could take place in Shanghai in 2015.
Though it is a common view that China's economy will slow down in the future, the growth rate is likely to stay at 7 to 9 percent, instead of 9 to 11 percent in the past, Mundell said during an interview at the second Huatuo CEO Forum held in Shanghai recently.
He acknowledged China's remarkable resilience to the world's financial crisis and advised the Chinese government to spur consumption to offset shrinking exports and further ease its monetary policies by lowering the reserve requirement ratio for banks.
Mundell said the economic woes in the United States and Europe will dampen the demand for Chinese-made goods and reduce China's trading surplus. There would in turn cool down fixed-asset investment in the country.
The world needs more stimulus measures to avoid a recession, he said, but the US has already completed three rounds of quantitative easing and has come to a fiscal cliff, while Europe is struggling to solve its debt crisis.
China is the country that still has big room for policy adjustments and can contribute to establishing a new equilibrium in the international monetary system to avoid wild swings in exchange rates, Mundell said.
He proposed the idea of dollar-euro-yuan (DEY) economies serving as an anchor for a much-need world currency he called INTOR as they account for half of the world economy.
This new currency can be created for the International Monetary Fund system as a whole in which every member of the Fund would share and be endorsed at a new Bretton-Woods meeting of all member countries, which he said could take place in Shanghai in 2015.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
