What's important to realize is that all economic distress including the current subprime turbulence, contain within themselves valuable lessons worthy of discovery and scrutiny. Indeed, these lessons can serve as an important source of insight for China as it improves and develops financial markets and macroeconomic policy-making.
Indeed, the fact that Japan and the euro area are struggling with this challenging triad further complicates our task, because there are important potential spillovers from monetary policy in other major economies to our own economy through exchange rate and yield curve channels. 11 In light of the likelihood of more frequent episodes at the ELB, our monetary policy review should advance two goals.