Experts Talk About The Depreciation Of The Renminbi Will "Defensive Line Retreat"

If China

To maintain the stability of the RMB exchange rate, we must intervene too much in the market.

If the central bank allows the RMB exchange rate to be more determined by market factors, it may trigger a sharp depreciation of the renminbi, or even a devaluation of the renminbi's trend.

If the Central Bank of China wants to maintain the stability of the RMB exchange rate, it will have to intervene too much in the market.

If the central bank allows the RMB exchange rate to be more determined by market factors, it may trigger a sharp depreciation of the renminbi, or even a devaluation of the renminbi's trend.

If this happens, it will not only disrupt the internationalization of the RMB, but also lead to massive outflows of funds, which will cause the three big bubbles in China's economic life to burst.

Therefore, for the Central Bank of China, how to balance this relationship and how to make this balance most beneficial to China is the biggest problem at present.

When we consider the effectiveness of a regulatory authority, it is not how fast the industry develops, but how many risks it has in the development process. When you see these risks, how to properly handle these risks and properly handle risks are the achievements of regulators, not because they do not produce risks.

If we can uphold this concept, allowing financial products to default when they default, when the risk arises, we can turn small earthquakes to avoid big shocks, which is more beneficial to the healthy development of the market, and play a decisive role in the allocation of resources in the market, and it is also very beneficial to the formation of the price of the financial market.

The core connotation of the supply side reform is the effective system supply. We are facing the real problem of marketization, globalization, democracy and legalization, and in the reform of the deep water area. The real problem is how to tackle tough problems and how to cut the hard ones down. This is the question of economic and social pformation and upgrading. The upgraded version is a realm that the "normal" of the new normal must fall into. The most important thing in this upgrading version is the innovation drive, that is, effective institutional supply support structure optimization, and activate all potential of TFP to link up the overall well-off society and connect China dream.

The key factors of sustainable growth, technology and production organization are all on the supply side, both on the business side and the market side. The enterprises in the market are the main body of the upgrading technology, and the enterprises in the market and the micro economic units are the innovation subjects of the resource organization mode.

This is not to say that the government can do nothing. The primary role of the government is to create a system environment conducive to improving technology and production organization, especially the system of protecting property rights, including the rule of law.

The supply side needs no management at all, and it can not be managed.

If our state-owned enterprises do not reform, it is difficult to achieve an annual average growth of 6.5% per year. Now the supply side reform is relatively hot. We are now avoiding the reform of state-owned enterprises to talk about supply side reform, which may be pointless, because the reform of state-owned enterprises is the real supply side reform.