The chairman of the National Social Security Fund is Dai 15 at the Boao Forum again stressed that "lead to price hikes and currency issuance is an
important reason for a new round of inflation."
, though investors that capital flows are temporary, but he also said that the world is now facing a
very special situation, the West experienced serious financial crisis, and the growth rate is very low,
Strong growth in emerging markets last year reached a record capital inflows, this phenomenon will continue in the future.
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Other business executives also mentioned the phenomenon of hot money in the long and short term capital flows and structural related.
Bo Mao Group (Permal) Chairman, Chief Executive Officer Germany, said the bullish growth in emerging markets and high interest rates of hot
money, hot money is a structured, will a long time. Orville into consulting CEO John de Flyers
Further added that capital flows into "pull" and "push", the Chinese market so that their growth in emerging markets have a "pull" effect, which is a
structural flow of funds. The so-called "push" of this part of the funds is due to the U.S. and Europe
And other developed countries and regions of low interest rates and loose monetary policy, these funds may be chasing short-term interests.
Rapid inflows and outflows of hot money the parties will have significant impact on countries and regions. How to predict this it?
Jiang Jianqing, chairman of Industrial and Commercial Bank of China in the "response to capital inflows: hot money and bubble" to remind the sub-forum,
both in Latin America or the Asian financial crisis of this phenomenon have emerged in the short run a lot of hot money into these countries,
Capital markets of these countries or the real estate market speculation is very high, and then suddenly withdraw capital, causing severe economic shocks in
developing countries, leading to a country's financial crisis, and even evolve into a regional and world financial crisis.
He also pointed out that recently the International Monetary Fund formally proposed the concept of capital controls, new market countries to adopt
capital controls limited the model to illustrate the negative impact of hot money inflows reached a consensus in the world.
Lian Ping, chief economist at Bank of the "Daily News" said: "From the current situation, China's fast economic growth, the United States to QE2, the
global spread of U.S. dollar, coupled with the situation in Japan is the hot money in a certain stage will flow to the.
Hw long this trend is specific, depending on the operation of our economy, it also depends on economic performance in Europe and America, and if recovery of
economic growth in Europe and America, then flows to emerging economies, the hot money will be reduced. And if emerging economies, the high inflation is not
Next, or the recurrence of a new round of higher inflation, leading to asset bubbles burst, then the rapid outflow of hot money will also blow on the
economy. "
Paulson stressed that the U.S. should reduce the deficit
At yesterday's forum, former U.S. Treasury Secretary Henry Paulson said the U.S. government has made a lot of goals, one goal is to reduce the U.S.
deficit. This is the biggest United States, the most basic and most important issue. He believes that the United States
There are many policies to support the production of the deficit, "and as a nation, as a nation, then, the U.S. borrowed too much, saving too little, this is
not sustainable."
In addition, Paulson repeatedly stressed that the U.S. does not need more regulation, but the need for better regulation. U.S. regulatory system is built
up many years ago, so there are some large organizations are not regulatory, there are some regulatory arbitrage line
Was.
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