Shao: China needs to adjust inflation expectations

On the afternoon of November 5, Shao, director of the Global Center for Columbia University, said in an exclusive dialogue with Sina finance after attending the Caixin summit that China needs to adjust its inflation expectations to meet a new round of quantitative easing in the US.　　Shao that the second round of quantitative easing in the United States is a last resort and reasonable for its own country, but it will also raise global inflation expectations and commodity prices such as oil. He said China should therefore adjust its inflation expectations so that China's inflation expectations are 4%-5% higher than that of the US, and that new monetary policy needs to be followed at the same time, such as raising interest rates.　　Shao that the nominal interest rate must exceed the inflation rate, otherwise people's livelihood and income can not be guaranteed, speculation will increase. In addition, he said the hot money problem is not very scary. If interest rates can be raised to reduce asset bubbles, then hot money will not stay in the bank to earn spreads. (Yang Zhuo from Beijing)