theBRICSAsia,Internationalization,andInternational.pptVIP

Increasing divergence of virtual or financial economy with real economy: ratio of financial assets with GDP After unification and fixing of RMB exchange rate, China’s GDP growth has maintained smoothly very high and inflation very low and stable CPI data for China from 1990 to 2001: Unification and fixing of exchange rate have contributed significantly to reduce inflation 2. Single-sided appreciation of RMB against dollar since July 21, 2005 has not achieved the claimed objectives: (1) correct Sino-US trade imbalance? NO (2) stabilizing China’s price level and inflation expectation? NO (3