Wu Jinglian: high prices simply because currency extra high rates | restriction | | trillion _ news

Xinhua real estate Beijing, June 15 (reporter Zhu Ling) "I don't know why she has" sales ", those of us who are nerds, from the point of Economics does not understand. So you ask me restriction to loose, I can't answer. "Yesterday, according to loosen as much recently," restriction "phenomenon, a well-known economist Wu Jinglian told Xinhua and other media said.

Wu Jinglian believes that high house prices is a super currency, M2 growth in China in recent ten years (broad money growth) too fast. "Too much money, and some people want to hedge investments to buy a House, and due to our monetary purchasing power is very strong, just fry up house prices. ”

But apparently also requires a process of total circulation, steep decline likely encounter business difficulties, or even systemic risk. "The current housing issues need to be resolved through other methods", he said. He recommended the adoption of low-rent housing or housing in order to solve the housing problems of low and middle income groups,

This year, the Central Bank has twice "targeted reduction", Wu Jinglian said this kind of thing can be done, but do not evolve into general monetary expansion. "Expansionary monetary policy and credit policy, meant to further improve leverage increased leverage, this is very dangerous. ”

Prior to that, he has said publicly that State assets balance sheet gearing (leverage) is too high (mainly State-owned enterprises ' debt and the debt of local governments), are the most prominent issues on the macro-economy in China.

(Edit: SN069)
10:55 on June 15, 2014 Xinhua NET