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- Global perspective urged in setting policy
Date: 7-Dec-2007 Sources: (Shenzhen Daily)
THE government needs to pay close attention to changes in the global economic situation when making its own policy decisions, said Hu Xiaolian, director of the State Administration of Foreign Exchange.
These developments include the subprime mortgage problems in the United States, monetary policy changes in the world's main economies, the trend of energy and food prices, as well as the changes in the exchange rates of main currencies, Hu wrote in an article carried in a special edition of the Caijing magazine published Wednesday.
'When changes in the global economic situation start to exert significant impact on China's economic development, we need to adjust the magnitude and focus of China's macroeconomic controls,'she said.
The comments reflect increasingly complicated tasks the government has to handle when domestic economic growth, expected at 11.5 percent this year, is threatened by overheating, while growth in the world's other main economies like the United States has been hit by the credit crunch.
China's central economic work meeting, which just ended Wednesday, decided to adopt a tight monetary policy next year, abandoning the long-existing prudent stance. But the government may have to tread carefully in avoiding any sudden plunge in the economic growth, economists say.
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