Great powers need formidable central banks and remarks from Xi Jinping suggest he considers China’s financial machinery is not quite up to scratch. The president sounds like he's looking to give the People's Bank of China some of the tools that will allow it to more closely resemble the Federal Reserve. The question is, which Fed?

Xi has done much to consolidate power in his office and enhance the already giant footprint of the central government. So it's unlikely that he wants the PBOC to set borrowing costs independently and release reams of projections — and sometimes jarring commentary — into the public domain, some of which may be contrary to the ruling Communist Party’s message. Nor is Beijing likely to look favorably on a decision-making process that allows for some vocal opposition on key decisions, as has often happened on the Federal Open Market Committee. No way that flies in China.

QOSHE - Xi Wants a PBOC That Looks a Lot Like the Fed - Daniel Moss
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Xi Wants a PBOC That Looks a Lot Like the Fed

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23.04.2024

Great powers need formidable central banks and remarks from Xi Jinping suggest he considers China’s financial machinery is not quite up to scratch. The president sounds like he's looking to give the People's Bank of........

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