ADB: Asian region should be built

"Financial reporter Fanglu" "Asian countries should have a Asian region, there are ' ASEAN +3 ', or 10 ASEAN countries, China, Japan, North Korea have joined."　　The establishment of the Asian region is a very effective way to deal with today's global economic imbalances, "said Zhong Hong, director of the Asian Development Bank Institute." The river is Hong is in November 11 by the China International Economic Exchange Center hosted the 17th issue of "monthly economic talks" to make this statement.　　The meeting focused on "international economic imbalances and exchange rate issues". Because of the lack of demand, Asia itself "must create its own needs" and "must create its own needs within Asia", Zhong Hong said, because of the absence of demands from Europe and the United States.　　He called for a rebalancing of the global economy, or for correcting global imbalances, "Asia must take its own responsibility and play its part in its own country". Zhong Hong that Asia is very competitive in terms of global price competitiveness, and that competition is also going on among Asian countries.　　But now, in the face of this global problem, Asian countries should not think about competing with each other and should "put these small interests down and sit together and discuss how to deal with the negative effects of the Fed's second round of quantitative easing." Confidence in the dollar has not collapsed in the financial crisis, but the US financial system has been badly hit.　　In Zhong Hong's view, U.S. quantitative easing has limited positive impact on the United States, and the losses to other countries should not be overlooked, so the policy is "to push the issue to other countries is irresponsible". As Japan faces a deflationary problem, Japan has long used its so-called loose monetary policy, he said. In Japan's experience, the impact of the policy on the overall economic activity, such as the impact on employment, would be very small. Instead, the policy would result in price deflation or further inflation. Loose monetary policy can create more liquidity to commodity markets, such as food, energy, and minerals.　　From this point of view, the United States can import or raise domestic inflation, in fact, "the United States will make the world face inflation problems." The impact on the global economy of increasing the dollar's market is to make goods in the international market more expensive, such as oil, steel, minerals, food and so on. At the same time, countries with high interest rates face their own currency pressures and inflationary pressures. It could also lead to bubbles in the stock market.　　"QE cannot really raise American income, they have a very limited positive impact on the rest of the world or the country, so the policy is very negative," said Zhong Hong. Based on these analyses, Zhong Hong believes that we cannot really solve the problem through quantitative easing policy, so we need to find a more systematic solution to this problem.　　He stressed that "cooperation is very important in global policy development". Asia should be able to cut off global economic imbalancesIn particular, as a regional Asian market, it is not possible to rely entirely on the US market or the European market, as they will take a long time to recover.　　"Asia is going to make a difference in our own market, we need to have a rebalancing." "The United States and Europe should be responsible for the global economic crisis. The weak regulation of US financial institutions, coupled with the very loose monetary policy of the United States, led to too much liquidity in the US, so the crisis was caused by the US, "said Zhong Hong.　　In his view, no matter which country to achieve the surplus will become the current account deficit of the United States "target", initially Japan is the U.S. target, now replaced by China.　　Zhong Hong stressed that the Chinese market is "very important" throughout East Asia, and that the appreciation of the renminbi is "actually very useful", not only useful to Asia, but also beneficial to China's own response to inflation and control of asset market bubbles, and will have a positive impact on regional cooperation. Zhong Hong said that the rebalancing of the global economy required structural reforms in many areas, as well as a regional cooperation policy, including exchange rate policies.　　"To establish the Asian region, we need the exchange rate management of the entire Asian currency, and it is very, very important that we can achieve rebalancing," he said. Mundell, the Nobel laureate in economics, known as the "father of the euro", said in 2009 that "it is difficult to hope for a unified and independent ' sub-zone ' because there is a balance of power in the main currency in the region and there is not yet an absolute strong currency", but Mundell said It does not preclude the possibility of the Asian region forming a unified currency region in 2015.