Donald Kohn Says China Will Need to Let Yuan Fluctuate
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Donald Kohn, a former vice chairman of the Federal Reserve, said “the Chinese will need to allow the exchange rate to fluctuate.”
“They’ll need to grant independence for the People’s Bank of China to run an independent monetary policy aimed at macroeconomic stability,” Kohn said during a panel discussion at the Brookings Institution in Washington today. He is now a member of the Bank of England’s Financial Policy Committee.