On December 9th, Edward C. Prescott, the Nobel Prize winner in economics, addressed the issue of the RMB exchange rate during his speech in Shanghai today and said that China is expected to have more room for inflation to rise on the one hand. On the other hand, it will gradually make the renminbi appreciate.

Prescott, who won the Nobel Prize in Economics in 2004, is currently a Senior Advisor to the Federal Reserve Bank of Minneapolis.

Before attending the financial investment expo in Shanghai, he told reporters that “China hopes to take follow-up measures on the exchange rate. In order to catch up with the latest developments, we are concerned that the deviation from the evaluation of purchasing power will shrink, which deviates from purchasing power. The phenomenon will become smaller and smaller, and it will be true for rich countries."

"Because of the exchange rate, the difference between different commodities and prices will be reduced. At the same time, China has two methods in this trend. One is to allow more inflation and the other is to allow the renminbi to appreciate. My opinion is that China will This method is used in parallel," Prescott said.

On the same occasion, economist Robert J. Barro pointed out that the purpose of U.S. monetary policy is on the stability of domestic prices. As for the international monetary system, in the past few years, when some countries adopted floating exchange rates, When it comes to measures, China has always taken a hard look at the dollar.

“Whether it is a country with a floating exchange rate or China, satisfactory results have been achieved and the volume of international trade has been upgraded in the past few years.” Barrow said, “The low exchange rate of the RMB against the U.S. dollar, although the U.S. domestic consumption It is helpful for the person, but it is not sustainable."

Barro said that "China should substantially adjust the exchange rate of the renminbi from a tightly focused dollar to a floating one. This is beneficial to China because it will make China's domestic consumers more purchasing power."