Xu Xiaonian: The Central Bank Raises Interest Like Taking Medicine &Nbsp; The Premise Is Not To Spoil Money By The Government.

Xu Xiaonian said: "on the one hand, the financing channels are narrow, on the other hand, the investment channels are narrow, and the two narrow ones bump into each other to produce the phenomenon today. You are not tight with inflation. You are tight, and the small and medium-sized enterprises can not borrow money. Actually, this has nothing to do with monetary policy. This is a problem that only financial reform can solve."

"The central bank's tightening policy will continue in the second half of the year.

Quantitative tools are selective.

Since the first half of this year, in order to deal with serious

In response, Xu Xiaonian said that the central bank's tightening policy is expected to continue in the second half of the year, which is correct.

He agreed to continue to use price instruments to raise interest rates.

"Because quantitative tools are selective, we have seen obvious selectivity. The use of quantitative tools is the choice of large state-owned enterprises. Those discriminated against are all small and medium-sized enterprises and private enterprises, and the price instruments are alike.

The current private interest rate is too low. In the 90s of last century, when private interest rates were more than ten percent against inflation, it could be done at that time. Why can't it be done today?

So far, there has not been a clear statement. "

Xu Xiaonian said.

Xu Xiaonian believes that under the current circumstances, price instruments and quantitative tools have to be used, but the price instruments have lagged behind the quantitative tools. The rate hike has lagged behind inflation, so that the real interest rate is still negative, and it is becoming more and more serious. "Because inflation rate is faster than the central bank's interest rate hike".

In this case, private capital will certainly be flooded.

"Money will not stay in the bank. How will the funds stay in the bank if interest rates are negative?

When you stay in a bank, the more you save, the greater the loss. "

Xu Xiaonian said.

Xu Xiaonian said,

Xu Xiaonian believes that more important and urgent than monetary tightening is to start a market-oriented structural reform, rather than the government's various plans. "The real solution to the problem of China's economic structure is market-oriented reform, so that the market can play a more role and the government retire from the economy. I think this is more urgent."

To solve the financing difficulties of small and medium-sized enterprises, we need to rely on private finance.

Under the tight monetary policy, the days of the large and medium-sized private enterprises are getting worse and worse, and the financing problem is increasingly becoming a bottleneck restricting their continued development.

In this regard, Xu Xiaonian said that the solution to the financing of small and medium-sized enterprises is to open private finance, so that these folk, currently operating in the underground, loan institutions floating to the surface of the sun to operate.

"Relying solely on large state-owned banks can not solve the problem of financing for small and medium-sized enterprises. To solve the problem of financing SMEs must be private, grass-roots, low-cost, community-based small and medium-sized financial institutions, these small and medium-sized financial institutions, the government only needs to carry out minimum supervision to them, one of the main contents of regulation is capital adequacy ratio, the second is information disclosure, to disclose accurate information to regulatory authorities."

Xu Xiaonian believes that many people now put money in these private financial institutions. The risk is high, but they can not blame him.

Because our private investment channels are too narrow, our financial reform task is very heavy.

"On the one hand, the financing channels are narrow, on the other hand, the investment channels are narrow, and the two narrow ones have come together to create this phenomenon. This is a problem that can only be solved by financial reform."

Xu Xiaonian said.

QE3 will not be useful or will trigger global inflation.

At the end of June, the second round of quantitative easing ended in the United States, but the US economy did not show any marked improvement. On the contrary, the unemployment rate rose sharply and the housing market was sluggish. In order to stimulate the US economy, Bernanke, chairman of the Federal Reserve, said that to relax the market, it is possible to introduce a new round of quantitative monetary policy (QE3).

In this regard, Xu Xiaonian expressed strong doubts that he believes that the Fed's "logic has gone all the way".

"QE2 has been doing this for a long time, and the unemployment rate in the United States is still high, or over 9%.

After the crisis, the Obama administration has done everything in its power to stimulate the economy with fiscal policy.

QE1, QE2 and QE3 will not be useful. Continuing to make money can only continue to distort the very important price signal of the market economy, such as Greenspan, interest rate. The role it plays is just like Greenspan's loose monetary policy, where we will create asset bubbles here, there or elsewhere. Let's wait for the next bubble to burst and wait for the next federal reserve to save the fire. When will this cycle end?

Xu Xiaonian said.

In recent days, Obama and Congress have argued over whether to raise the national debt ceiling. In Xu Xiaonian's view, Obama is considering more elections next year. "Obama wants to buy votes with banknotes and keep on speaking about national interests. In fact, what he thinks of is his interest in re election next year."

Xu Xiaonian believes that if the United States launches Q E3, it will cause another round of global inflation. This global inflation will inevitably affect China. Its conductivity is mainly from commodities. "In recent years, we have seen very clearly that global commodity prices will rise as long as the Federal Reserve releases money, and China will be the largest importer of commodities after the rise in commodity prices, which will definitely affect China's economy, so under such circumstances, I think we need to continue tightening monetary policy."