U.S.told to give "explanation" for new monetary policy

16:00, November 05, 2010      

Email | Print | Subscribe | Comments | Forum 

A senior Chinese foreign affairs official said on Friday that the United States should "give an appropriate explanation" for its latest relaxed monetary policy, urging the U.S. to take a responsible attitude as a major reserve currency issuing country.

The U.S. Federal Reserve (Fed) announced Wednesday that it would engage in a second round of a process known as "quantitative easing", or QE2.

Through the process, the Fed plans to purchase 600 billion U.S. dollars worth of government bonds in a bid to revive the sluggish U.S. economy. The American central bank hopes this move will ultimately reduce the high jobless rates that continue to plague the U.S. after the economy took a nose dive two years ago.

This is the second round of such stimulus measures, after the Fed purchased 1.7 trillion U.S. dollars worth of mortgage-backed securities and treasury notes between December 2008 and March 2010 in a bid to keep the economy from plunging into Great Depression again.

This move has been drawing wide concerns and criticism.

"For the Fed's new relaxed monetary policy, many countries have expressed worries about what impact it would impose on financial stability," said Chinese Vice Foreign Minister Cui Tiankai at a news briefing.

"The U.S. new monetary policy will affect not only emerging economies but also developed ones," Cui said.

While urging the United States to "take a responsible attitude" as a major reserve currency issuing country, Cui quoted financial experts by saying that the issuance of banknotes in a reckless manner is in fact a disguised form of currency manipulation.

Cui believed that the latest U.S. monetary policy is likely to lead to "spill-over effects", which may eventually evolve into "flooding" if it is not restricted.

"The international community has every reason to feel worried, so the U.S. side owes it a proper explanation for the move," Cui said.

Source:Xinhua

(Editor:梁军)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion