EconWatch.com > Ben Bernanke Says the Obvious

[Grasping Reality with Every Limb: Brad DeLong's Semi-Daily Journal] Why couldn't it be that the Chinese leadership wants the nation they control to create and produce the goods and services of the 21st century? Perhaps they believe this is where true power lies in the community of nations and have adopted a type of mercantilist strategy to accomplish their goals.

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Institutional-economics.com[Institutional-economics.com] Institutional Economics Blog: Contrary to economist-blogger Stephen Kirchner (2006), Ben Bernanke is not a prophet of “the view that markets and not monetary policy should determine growth rates in broad money, credit aggregates and asset prices.” In a fiat money regime, the central bank controls the monetary base, and broad money is geared to the base via the money multiplier, so monetary policy-makers and not markets determine growth rates in broad money. Under inflation targeting, the Fed would adjust the base and thereby broad money to support the targeted price level path.

http://www.rgemonitor.com [Rgemonitor.com] RGE - Martin Wolf must have an amazing research assistant ”¦: Indeed, One of the big advantages of east asia historically is that the high savings Asian economies have generally not had domestic financial systems that operate in dollars, which limited their currency mismatches (apart from a period in the 1990s when they relied too heavily on short-term fx lines from foreign banks). China's domestic banking system operates largely in RMB, and domestic houeshold $ deposits have been trending down, so the Chinese banks have little direct exposure to currency swings.

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