Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > Capital Markets Viewpoints > US Monetary Policy And Its Impact On China and Emerging Economies

Capital Markets Viewpoints

US Monetary Policy And Its Impact On China and Emerging Economies

by Simon Derrick

Conclusion

What happens to the currencies and government debt markets of the developed world when China finally liberalizes remains to be seen. However, given how much they have arguably benefited over the years from demand from the likes of China, this suggests that the time for action by the developed nations to bolster confidence in their underlying markets is now.

The views expressed herein are those of the author and not BNY Mellon. This material is not intended to be the offer or solicitation of any product or service in any jurisdiction where prohibited.

Notes

  1. The views expressed herein are those of the author and not BNY Mellon. This material is not intended to be the offer or solicitation of any product or service in any jurisdiction where prohibited.

  2. “Testimony by the Chairman of the Board of Governors of the US Federal Reserve System, Mr. Alan Greenspan, before the Committee on Banking, Housing, and Urban Affairs of the US Senate on 21/7/98.” Page 8. Bank for International Settlements, Basel. Online: www.bis.org/review/r980724b.pdf

  3. COFER stands for “currency composition of official foreign exchange reserves.” The entry page for the IMF’s COFER data is: www.imf.org/External/np/sta/cofer/eng/index.htm

  4. Yu Yongding, China Business News, April 2006. http://www.iie.com/publications/pb/pb07-4/yu.pdf

  5. Premier Wen Jiabao, closing session of the National People’s Congress, March 2008. http://news.xinhuanet.com/english/2008-03/18/content_7812091_1.htm

  6. Reuters. “international supervision over the issue of US dollars” and for the United States to “live within its means” quotes. http://www.reuters.com/article/2011/08/06/us-china-sp-idUSTRE7750R720110806

  7. Xinhua. “After historic downgrade, U.S. must address its chronic debt problems.” English news August 6, 2011. Online: http://tinyurl.com/3qd9k4a

  8. Xinhua. “News Analysis: How can China well manage huge U.S. dollar assets?” English news August 22, 2011. Online: http://tinyurl.com/ok3ladh

  9. Yu, Yongding. “China can break free of the dollar trap.” Financial Times August 4, 2011. Online: http://tinyurl.com/neymxb5

  10. Wall Street Journal. “Bernanke talks: A conversation at the NBER.” July 11, 2013. Online: http://tinyurl.com/qym8ye4

  11. “Foreign exchange reserve data for China showed that its holdings increased by US$163 billion (Thomson Reuters, cited in South China Morning Post)” http://www.scmp.com/business/article/1332551/despite-default-risk-beijing-stuck-us-treasury-debt

  12. Bloomberg News. “China names yuan convertibility plan as goal this year.” May 7, 2013. Online: http://tinyurl.com/bwbnjuy

  13. China State Council. “Shanghai FTZ overall plan released.” Free trade test area overall program notice Guo Fa (2013) no. 38. FTZ-ShangHai website, September 18, 2013. Online: www.ftz-shanghai.com/Policies/overall_plan_released.html

Back to Table of contents

  • Page 3 of 3

Further reading

Books

  • Authers, John. Europe’s Financial Crisis: A Short Guide to How the Euro Fell Into Crisis and the Consequences for the World. Upper Saddle River, NJ: Pearson Education/FT Press, 2013.
  • Davis, Norman. Vanished Kingdoms: The Rise and Fall of States and Nations. New York: Penguin, 2012.
  • McLean, Bethany, and Joe Nocera. All the Devils Are Here: The Hidden History of the Financial Crisis. New York: Portfolio/Penguin, 2010.

Article

Websites

Back to top

Share this page

  • Facebook
  • Twitter
  • LinkedIn
  • Bookmark and Share