Unirule Institute of Economics held Macroeconomic Analysis Report for the 1st Quarter of year 2010 Release Conference On April 23rd, 2010. Prof. Zhuang Shuguang, Chairman of the Academic Committee of Unirule Institute of Economics, hosted the release conference, with over ten reporters from different news media being present. Prof. Zhuang Shuguang also answered certain questions raised by reporters.
The report points out that, in the 1st quarter of year 2010, economic turnaround trend fastened with GDP of the 1st Quarter increased by 11.9%, and value-added of industry increased by 19.6%. Under the current economic system and heated city construction wave all around the country, it’s easier for China’s economy to go fast than go slowly; rebound of CPI growth rate does not indicate decline of inflation expectation; trade deficit is only temporary phenomenon; real interest rate might be negative; housing prices rising too fast also poses a real test for Chinese government’s policy-making ability.
China should deal with the current exchange rate problem from our own interests, adopts initiative measures and strives for more space for initiative operation under the circumstance of strong recovery growth of international trade. It must also be made clear that, activating exchange rate adjustment mechanism weighs more than exchange rate adjustment itself, and de-pegging and changing the anchor as well as enlarging exchange rate floating scope is the real solution to China’s current exchange rate problem.