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Risk control and steady growth of currency policies
2014-03-17
Due to the slow growth of China's economy, the "lack of cash" in the financial market recently has caused people to panic. Public concerns about the banking industry may lead to systematic risk that weakens the real economy.
Considering China's new financial situation, Zhang believes internal contradiction will intensify during the economic transition process. The "lack of cash" is a structural and flexible shortage that can influence the economy, but will have little impact on systematic bank risk. China should not loosen currency policy control, but seek balance between steady growth and risk control.
