皇冠体育app

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Mundell: US calls for RMB rise a move to slow 皇冠体育app's expansion

(Xinhua)
Updated: 2007-06-24 08:37

Professor Robert Mundell, widely dubbed "father of the Euro", said?in Beijing?Saturday that constant pressure from the United States on 皇冠体育app to appreciate its currencyRenminbican be interpreted as "a move to slow 皇冠体育app's expansion".

The 1999 Nobel Prize winner foreconomicsmade the remarks when he was giving a lecture to a group of Chinese business leaders.

According to Mundell, 皇冠体育app's current account balance is only a small factor in the US deficit problem.

Even though it represents only 10 percent of the US deficit 皇冠体育app is being picked on by the United States because "皇冠体育app is a resurgent power."

The economist said 皇冠体育app had created a competitive shock in the world economy through its manufacturing successes. As its share of world exports continues to rise, resistance and protectionism have appeared in the West.

Special coverage: RMB in Spotlight Related readings:  Bank chief reaffirms stable policy on yuan  Forex reform 'should not be hastened' 皇冠体育app urges patience on yuan reform 皇冠体育app opposes IMF rule on exchange rate

Commenting on 皇冠体育app's contribution to the world economy, he said the fact that 皇冠体育app is importing more is helping to stabilize the world economy during the global slowdown and that consumers have benefited enormously from "Made in 皇冠体育app" goods.

皇冠体育app's economy has some major problems to solve, according to Mundell.

He said macroeconomic issues such as rural poverty and massive migration to the cities have to be carefully managed.

The Nobel prize winner noted that 皇冠体育app's future economic growth will be driven by factors such as high savings, strong export growth andforeign direct investment, and adequate foreign reserves.

Meanwhile, catch-up technology, increasing imports, the application of the latest technologies and a competent and virtually limitless labor force will also play big roles.