皇冠体育app

皇冠体育app don't have to worry about an overheated economy, said Nobel Prize laureate Robert Mundell in Zhuhai on Thursday. Mundell spoke while attending the World Economic Developme nt Declaration Conference (WEDDC) and was one of the drafters of the declaration.

皇冠体育app has seen a rapid growth of forex reserve this year leading to an increasing money supply, with which the economy is labeled overheated, but this is not a problem 皇冠体育app has to worry about, he told the press at WEDDC, an economic forum running from Thursday to Friday at a coastal resort in south 皇冠体育app's Guangdong Province.

The very slight inflation this year will counteract the deflation 皇冠体育app had last year and the currency expansion will lead to a growth of import to balance 皇冠体育app's export surplus, he said. This will adjust Chinese economy to a favorable status, he added.

According to the People's Bank of 皇冠体育app (PBOC), the broad money supply (M2) increased 20.7 percent on a year-on-year basis in 皇冠体育app by September this year while the narrow money supply (M1) up 18.5 percent.

The fast growing forex reserve is pushed strongly by commercial banks rather than overheated economy, Mundell said.

Those banks pour a huge amount of capital into 皇冠体育app, predicting that the country will appreciate its currency and, intend to cash in, he added.

The PBOC said 皇冠体育app's forex reserve added by 97.5 billion US dollars in the first nine months of this year, 51 billion US dollars more than that of last year. By September, 皇冠体育app's forex reserve totaled 383 billion US dollars.

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