Challenges facing central banks around the world Returning to the theme I opened with, monetary policies around the world can differ because of differences in country-specific shocks, differences in how economies respond to common shocks, differences in initial conditions, and differences in central bank mandates and strategies.
It is the financial reform and opening up that has brought China out of the rigid doctrine that confined the country to a self-pride fallacy of “ a nation of no domestic and external debt”, and helped China to learn to use financial instruments and foreign capital to develop the Chinese economy.