Hobbs
12-17-2006, 08:12 PM
Chinese policy-makers risk losing control of their economy unless they let the yuan rise in value and strengthen their financial system, U.S. Federal Reserve Chairman Ben Bernanke said on Friday.
Bernanke was in Beijing as part of a high-level U.S. delegation led by Treasury Secretary Henry Paulson that was trying to persuade China to let its currency float more freely to help reduce economic global economic imbalances.
"Monetary policy may be constrained by the lack of a reliable monetary transmission mechanism and by the relative inflexibility of the exchange rate, which inhibit the central bank's ability to keep inflation low and to stabilize the economy," Bernanke said in remarks prepared for delivery to the Chinese Academy of Social Sciences in Beijing.
http://today.reuters.com/news/articlebusiness.aspx?type=ousiv&storyID=2006-12-15T081728Z_01_PEK77496_RTRIDST_0_BUSINESSPRO-CHINA-USA-BERNANKE-DC.XML&from=business
Bernanke was in Beijing as part of a high-level U.S. delegation led by Treasury Secretary Henry Paulson that was trying to persuade China to let its currency float more freely to help reduce economic global economic imbalances.
"Monetary policy may be constrained by the lack of a reliable monetary transmission mechanism and by the relative inflexibility of the exchange rate, which inhibit the central bank's ability to keep inflation low and to stabilize the economy," Bernanke said in remarks prepared for delivery to the Chinese Academy of Social Sciences in Beijing.
http://today.reuters.com/news/articlebusiness.aspx?type=ousiv&storyID=2006-12-15T081728Z_01_PEK77496_RTRIDST_0_BUSINESSPRO-CHINA-USA-BERNANKE-DC.XML&from=business