Bernanke said U.S. economic policy to enhance the support the dollar

U.S. Federal Reserve Board (Federal Reserve, FED) Chairman Ben Bernanke on Thursday criticized as suffering from a high-profile defense of the public debt purchase plan, said the strong recovery in the U.S. economy is critical to global economic health .

"Continue to support the U.S. dollar to achieve strong economic fundamentals, and support for global economic recovery, the best way is to promote U.S. economic recovery in the price stability under the premise of the policy of strong growth," Bernanke for the European Central Bank (ECB) meeting preparation s speech said.

This will be the Federal Reserve announced on November 3 billion bond purchase plan 6,000 since the first public speech Bernanke.

The Fed once again resorted to large-scale asset purchase plan, sparking the wrath of global trading partners, they denounced as tantamount to support of competitive currency devaluation. German Finance Minister Schäuble of the policy will be referred to as "awkward . "

In the United States, Republican politicians and economists say the Fed move sowed the seeds of future inflation, intervention to weaken the dollar and the financial authorities the task of stimulating economic growth.

Bernanke said the weak economic growth, inflation and high unemployment rate fell to U.S. policy makers believe they need to take action.

"In the current economic orbit, the United States faced in many years to come, millions of workers will be unemployed or the risk of not fully employed." He said, "We think this is not acceptable."

FED was given a double mission, to achieve full employment and low inflation steady at.

Bernanke also said the short-term measures to promote economic growth and long-term deficit reduction, a combination of financial planning approach, the echo FED policy, is essential.

Bernanke noted that the recent dollar weakness, largely reflecting investors to sell off the debt crisis in Europe in spring when the cumulative dollar hedge positions.

Concern in many emerging economies, dramatic changes in investment inflows, may it become unstable. Bernanke said that some have a trade surplus of the emerging market economies not to allow currencies to appreciate, so that these problems are exacerbated.

"The trade surplus has been underestimated national currency, hindering much-needed international adjustment, if the exchange rate to reflect market fundamentals, further, the diffusion effect does not exist." He said.

Bernanke noted that the present global economic recovery, "two step", while emerging markets are back to pre-crisis growth levels, while the developed economies lagged. He said that the more developed economies must maintain an accommodative policy in order to make the economy recovery a long way. (End)

- Compile Yimao Lin / Xu Yan / Zhang Mingjun; revision Tao / Zheng Yin / Hou Xiangming



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