Zhou Xiaochuan: Energy Upgrading Helps to Expand Domestic Demand

According to "Finance", "Supporting structural adjustment, knowledge reform, and the replacement of products and technologies can also greatly expand demand." At the final keynote speech of "2009: Forecasting and Strategy" of the "Financial Economics" Annual Conference, the People's Bank of China Governor Zhou Xiaochuan made such a proposal for expanding domestic demand.
He said that the financial system should support technological transformation, upgrading of products, upgrading of technology, and modernization from traditional finance. Financial modernization is not just a variety of financial derivative products, but also serves the development of the entire economy and society. Therefore, the financial industry must provide more services for technological development and independent innovation.
Zhou Xiaochuan said that the People's Bank of China recently met with other organizations to discuss some issues related to carbon emissions and carbon taxes. He said that financial markets can provide support for carbon allowance trading, and through carbon allowance trading, finance can play a mediating role in guiding emission reduction investments. Financial markets can price carbon allowances, and they can also find ways to invest in emission reductions. Not only that, but there is a lot of risk involved in any one of the future emissions reductions involving new technologies in the future, and the financial community can play a role in risk management in this area.
"If we do well, we can expand our demand in the upgrading process, and at the same time, we can also allow the financial community to find a place to use and provide better financial services in the process of upgrading."
Afterwards, when answering the question about the experience of the Financial Crisis edited by Hu Shuli, chief editor of Caijing, Zhou Xiaochuan believed that the financial crisis always started after bubbles in certain sectors of the economy were overheated and there was not enough vigilance and related adjustment was insufficient. This includes both the lack of macro-control, but also the lack of adjustment at the micro level. Macro-control is generally counter-cyclical, but there are some pro-cyclical factors in the current micro-mechanism. There are too many positive feedbacks, and it is easy to expand during the economic up-cycle, and it is easy to shrink in the economic down-cycle. “Thus, summing up experience should include some counter-cyclical factors in the micro-mechanism. This includes injecting more counter-cyclical elements into the financial markets, the incentive mechanisms of financial organizations, and the structure of financial products to avoid excessive shocks. ."
As for the impact of the US financial crisis on China, Zhou Xiaochuan said that the initial general expectation was that it was first transmitted from exports, commodity prices, or investment losses in financial institutions. However, after the collapse of Lehman Brothers in mid-September, the above indicators When there are no obvious signs, China has been strongly affected. This may be the direct transmission of confidence. Through television, newspapers and the Internet, entrepreneurs have begun to lose confidence. "This conduction process is much more intense than people originally thought. It is worth our careful study." Zhou Xiaochuan said.

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