Famed economist and acting head of the Organization for Economic Co-operation and Development Jorgen Elmeskov says China's successful stimulus package and its focus on domestic consumption will lead China's growth during the crisis.
"Substantial fiscal tightening in OECD countries combined in sum with higher household saving[s] than when we saw pre-crisis could mean low interest rates for an extended period. That implies a tension between the interest rates that are appropriate for a fast growing economy like China's and the interest rates that will prevail in those OECD countries, including the US. There's likely to be a continued inflow of capital, which will have to be sterilized if financial conditions inside China are not to become too easy and lead to price hikes and inflation more generally. Relying more on direct domestic demand growth would also help to prevent the reemergence of the previous huge international imbalances."
The Beijing Forum, which usually focuses on promoting the humanities and social sciences, is this year touting itself as the premier international conference discussing China's role in the economic crisis. (www.hxen.com)
Vice Chairman of the Standing Committee of the People's National Congress Chen Zhili says China is committed to participating in reforming the international financial system.
"We need to establish efficient and commonly-accepted supervision standards for overseeing financial institutions, a warning and response system for risks, and strengthened cooperation in financial supervision in a bid to establish a new international financial order which has merits of being "fair, just and inclusive." At the same time, we need to look at the international monetary system that is responsible for the financial crisis, and increase multi-currency practice so that we are able to maintain the stability and sustainable development of financial markets."
Chen Zhili also emphasizes the importance of giving developing countries a louder voice in the global economy and calls for strengthening regulatory agencies.
