China’s central bank chief says his job is too difficult for many people to understand
Zhou Xiaochuan, governor of People’s Bank of China, says as mainland moves towards market-based economy the central bank has more work to do than its peers in mature markets
Beijing’s monetary policy must target a slew of different – sometimes conflicting – goals and is decided upon using complicated models that may go beyond the average person’s comprehension, says China’s central bank chief.
In an English-language lecture on Friday at the International Monetary Fund (IMF) in Washington, dotted with technical terms such as “Structural Vector Auto Regression models” and “Dynamic Stochastic General Equilibrium”, Zhou Xiaochuan, governor of the People’s Bank of China, explained “the objectives, roles and practices” of the the PBOC in a broad historical and global context.
Complicated models pose challenges over communication between the central bank and the public
Indeed, the yuan’s volatility was the smallest recorded among major currencies following Britain’s vote in favour of leaving the European Union on Friday.