In article published today in the Wall Street Journal writing about the gradual end of easy money:
"The winding down of U.S. monetary easing could trigger “a mild financial crisis” in some emerging economies, but not China, says Li Daokui, an economist at Tsinghua University and a former adviser to the central bank.
"The winding down of U.S. monetary easing could trigger “a mild financial crisis” in some emerging economies, but not China, says Li Daokui, an economist at Tsinghua University and a former adviser to the central bank.
On the plus side, he says, the gradual exit from so-called quantitative easing by the U.S. Federal Reserve will take the pressure off China to appreciate its currency — a good thing for exporters because it will make their goods more competitive in international markets.
On the minus side, emerging markets like Brazil, India and Indonesia — all vulnerable to rising interest rates in the U.S., and capital outflows — are big trading partners of China".
