China’s policymakers stressed over the weekend that a stronger currency would not necessarily ease higher-than-expected inflation, the Wall Street Journal reported. On Saturday He Keng, deputy director of the financial and economic affairs committee of the National People’s Congress, told a forum that China’s efforts to keep the value of the renminbi stable were not causing the country’s inflation and should be continued. Separately, President Hu Jintao said that inflation can’t be "the main factor in determining exchange rate policy." Their comments come as Hu prepares for his trip to the US this week. Many economists and US politicians have argued that by loosely tying the renminbi to the US dollar, China has imported loose US monetary policy and with it, inflation.
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