Source: CCTV.com

11-16-2008 16:16

A forum looking at the Chinese economy in the global context was held on Friday. Many attendees are predicting a long and painful recovery for many major economies, although they were more upbeat about growth in China.

A forum looking at the Chinese economy in the global context  was held on Friday.

Professor Laura Tyson from the University of California, Berkerley says the financial crisis is not a simple credit crisis. She predicts recession in the US may last 2 to 3 years.

According to the current bail out plan, the US needs 1.8 trillion dollars for capital injections into its troubled economic system.

Zhu Min, Vice President of Bank of China said "The big problem is where to find that 1.8 trillion US dollars. Countries around the world already hold 1.5 trillion dollars of US debt. I think it's impossible to let all the countries hold an additional 1.8 trillion dollars of US debt."

Zhu Min says the United States can only issue government bonds, increase tax, and print US dollars. However, each such move increases the risk of inflation and a weaker currency, and, possibly, even more financial turbulence.

But most experts are staying positive about China's economy.

Scholars are calling for concerted efforts around the world to address the crisis. They say it is now important to keep the exchange rate stable.

 

Editor:Xiong Qu