Yi Gang governor of China’s central bank
With an economics phd from America, where he also taught, Mr Yi is the kind of reform-minded, well-travelled technocrat that is disappearing from China’s policymaking establishment.
The Chinese official even argued—only half-jokingly—that he was reluctant to intervene in currency markets, partly because traders at hedge funds, securities firms and commercial banks are much better paid, and presumably therefore smarter, than him and his hard-working team at the central bank.
This was music to the ears of the crowd in Washington.
After covid-19 struck Fed slashed interest rates by 1.5 percentage points to near zero. The People’s Bank of China (pboc) cut them by only 0.2 percentage points.
Conversely, since the start of 2022, as the Fed has raised rates by 4.75 points, the pboc has nudged down rates another 0.2 points.
The Economist 20 April 2023
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