Nov 11, 2010
China said on Thursday that the U.S. Federal Reserve’s move to ease monetary policy risked undermining the global economic recovery, adding that Washington “should not force others to take medicine for its own disease”.
A senior Chinese central bank official told reporters at the G20 summit in Seoul that the Fed’s move had caused “strong concern” around the globe, and major reserve countries ought to factor in the global impact of their policies.
Zhang Tao, director of the international department of People’s Bank of China, also warned that disorderly capital inflows resulting from the Fed’s action could hurt emerging markets.
“For emerging countries, capital inflows may lead to significant increase in asset prices and foreign exchange reserves, and many ocuntries are concerned about that,” he said.