countries contingency fund, the IMF is obviously a replica. As we all know, the World Bank and the IMF are the two cornerstones of the current international financial system. BRIC countries are trying to build beyond this a "parallel system" embodies the developed countries disappointment and distrust, but also reflects the creation of a more comfortable, more convenient, more flexible demands of financial development environment.Desire is certainly beautiful, bunike air max 180 cheap
t ultimately can be achieved, the parties still need arduous efforts. At least for now, this "parallel financial system" could also face the following three aspects worries.One is how to balance equality and efficiency. From the World Bank and IMF development course, the United States living in absolute dominance. An America's economic strength because it was second to none, two after World War II because almost all the countries have to rely on the United States, and the U.S. leading role is also to ensure the normal two institutions, efficient operation. But BRIC banks from brewing to the establishment, has been keen to avoid the situation occurring in a country dominated from the average contribution to the agreed headquarters, this equality has color throughout. This approach can ensure a smooth birth BRIC banking arrangements and contingency reserves, but is not able to ensure the follow-up of operational efficiency. In the absence of the leader, and how to maintain efficient operation of these two bodies, to balance its policy features and market-oriented operation mode, it
may be a challenge.Second, the choice of currency. BRIC banks and choose what is the nature of the contingency fund money as credit, media assistance activities will be another key issue. Currently the vast majority of international and regional economic organizations in the U.S. dollar as an intermediary, but is committed to creating a parallel system of "BRICS", but not nike air max 90 cheap
necessarily willing to choose to do so. So, choose the currency of a country like SDRs or choose a basket of currencies If you choose the latter, what are qualified to enter the basket of currencies, according to what proportion This BRIC countries, but also a very real problem.The third is how to deal with risk. Degree of development of the financial system BRIC countries lagging behind, weak anti-risk ability, once faced with a systemic financial crisis (such as the U.S. interest rate hikes triggered massive foreign reflux), which may include all of the BRICS emerging economies, including both will be subject to severe shocks. If this situation occurs, the BRIC banks and contingency fund will be faced with the problem of how to rescue them. In this parallel system, because the lack of a "lender of last resort" role, in the event of an extreme case, it may be difficult to avoid a leg to stand even the capital is exhausted.All in all, the birth of the BRIC Development Bank and the contingency reserve arrangements are initial results BRICS economic and financial cooperation, and worthy of recognition, but it also should be noted that, since the three major concerns, the future still faces enormous uncertainty sex. "BRICS" must not be complacent with the developed countries trying to completely "decoupled" to the "parallel banking system" to
look for a sense of security. Therefore, the rational choice is to use inexpensive funds should BRIC banks have improved their infrastructure, the use of safeguards contingency fund to guard against financial risks, while trying to improve their own status and the right to speak in the United States-led international financial system. There is an article pointed out that China's current steel, flat glass, chemical, solar panels and other products, production capacity has exceeded demand in the domestic market, while surplus products usually at lower prices to overseas exports. This gives foreign competitors who brought great nike air max 1 uk
trouble, they also have to improve competitiveness through lower prices, which leads to lower profits for all vendors. In China, these manufacturers can obtain cheap loans to continue to produce and export. This model brings a risk of a further expansion of China's credit bubble, making China's economy more vulnerable to declining growth, and will lead to further expansion of production capacity. Of course there are winners, and that is the consumer, such as cars and household appliances to consumers. Iron and steel, glass, and reduce chemical products used in the production of consumer goods so that they may benefit costs. But for manufacturers and policy makers, this means tough decisions, and how to prevent the negative effects resulting further spread, how to prevent more companies, even the threat of free trade have become the problems they must consider. The discussion of the theory of a reference value.China's