Upcoming Talk on China’s Monetary Policy
Anyone who’s in Beijing is welcome to come to a talk I’ll be giving the morning of Friday, June 18, to the Foreign Correspondent’s Club of China. The topic will be: How does China’s monetary policy really work? I’ll discuss the main tools that the People’s Bank of China uses to manage money and credit in the Chinese economy, and how they differ — in subtle but important ways — from the conventional tools used by Western central banks. In particular, I’ll explain how China was able to finance last year’s unprecedented lending boom, and what the implications are for current policy on growth and inflation.
The talk is actually based on a blog post I’ve been working on for quite some time now, and hope to share here soon afterwards. It’ll be all the more timely in light of several developments this past week: Friday’s announcement that China’s consumer inflation rate topped the government’s target of 3%; the failure of the Ministry of Finance to attract enough bids for its most recent bond sale; and the central bank’s decision earlier in the week to raise interest rates on 1-year and 3-month bills. I’ll be showing how all of these items factor into the bigger question of whether and how China can keep its economy on track.
For those interested in attending the talk, you can find the details at the FCC website here. It will take place at 10:30am this Friday (June 18) at the Cheung Kong Graduate School of Business, which is located in Oriental Plaza (the Grand Hyatt complex on Wangfujing) on the 12th Floor of Tower E3. The event is open to non-members for a fee of 50 RMB. To register, send an email to email@example.com.