Quantitative easing [QE] by the Federal Reserve and other central banks cannot address fundamental economic problems but may lead to excessive global liquidity and competitive currency depreciation, China’s central bank said on Sunday. According to the People’s Bank of China, “Quantitative easing policy cannot fundamentally address economic problems, and it may cause excessive liquidity on a global scale as well as risks of competitive currency depreciation…creating imported inflation and short-term capital inflows [while] pressuring emerging markets.” – Reuters
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