Fed's Bernanke on the Chinese economy

In the speech 'The Chinese economy: Progress and challenges' given on 15 December Ben Bernanke of the Federal Reserve said Chinese policy-makers risk losing control of their economy unless they let the yuan rise in value and strengthen their financial system.

"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 stabilise the economy

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