PBOC dep gov also at the structural reform event in Beijing
- over supply and lack of supply exist at same time
- China needs structural reform and total demand management
- China should avoid overly loose monetary policy
- to keep ample liquidity when expanding total demand
- overly loose mon pol may bring depreciation
- excessive loosening of mon pol will create asset bubble and increase downward pressure on yuan
PBOC still finding life in the real world is a bit tougher than they may have thought.
