2012-02-06

Wu Xiaoling echoes Ron Paul: negative interest rate affects income distribution

吴晓灵:负利率不影响资源配置 影响的是收入分配

National Peoples' Congress Financial and Economic Committee, vice chairman Wu Xiaoling calls for liberalizing the banking sector, lifting the deposit rate ceiling and increasing competition. She says when inflation occurs, the wealthy diversify their investments and profit, but small savers are hurt. She talks about using subsidies to preserve their purchasing power.

She also says there's no lack of money in China. Prices are rising, but entrepreneurs cannot obtain capital. She says this is due to lacking investment channels and requires market reforms.

The situation in China is not so different from that in the United States, and if Ron Paul were to give a technical speech (Wu Xiaoling previously worked at the central bank) it might sound very similar. In his general speeches, he's made reference to the needs of savers and entrepreneurs.

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