The months from now until the decisions connected with the launch of Monetary Union, but also the second part of this year, will prove especially delicate for the entire system of European exchange rates. In these circumstances monetary policy, while it will continue to guarantee moderate medium-term inflation expectations, is now focused more on the stability of the exchange rate.
China’s political and economic development will depend largely on how the country deals with its growing internal imbalances, for example, the tensions between urban and rural areas to name just one. In China, the most pressing reform project is the creation of a well-functioning financial system able to channel national savings towards efficient uses and as an important step towards more exchange rate flexibility.