Another term which is interesting to follow is the volatility in macroeconomic within same logical way to analyse the derivative market, in the hedges fund. The volatility in China Daily a newspaper based in Shanghai decided to analyse the economy of china, the terms is use to shown the possible trend (see the graph below) in the case of an unspecified example within :http://www.onlinetradingconcepts.com/images/technicalanalysis/VolatilityZIsilvertop.gif
The Shanghai Daily that the fluctuation on the macroeconomic theory is not very reliable because the term does not consider economic globalization and polices aspects with expansionary (control by the central bank in this case the CBOC) or fiscal control b the government within speculation of the stocks market:
China's stock market fluctuations do not reflect any macroeconomic problems, the country's chief banker said Monday.
World stocks have recovered some of the ground lost in the drastic sell-off of global equities that began February 27 when China's Shanghai Composite, the country's main stock index, plunged nearly 9 percent.
"I personally believe that there are no problems at the macroeconomic level and stock market price fluctuations will not lead to any substantial change in trends," Zhou Xiaochuan told a press conference on China's monetary policy.
At the same time, Xiaochuan declined to answer directly whether the global sell-off was triggered by a sharp fall in China's stocks.
"Initially China believed that its share market was comparatively small and at a nascent stage in its development. But economic globalization has created a close relationship between fluctuations on various stocks markets. This is a testament that we must accelerate the development of China's market," the chief banker said.
Xiaochuan also said China should make more effort to better integrate its capital market into the global system.
the article shown the paradox of the economy within actual situation in the case of chinese huge growth could lead to weak in the future by making hyperinflation and disparty between rich and poor people. Following by the example of Argentina with in 2001 when the governement did the same as china nowdays by controlling his value of his currency (fixed exchange rates) by mainting a positive balance of payment therefore by putting liquidy inside the economy,not printing any money but by consolidate his reserve. the bulle was declare when the goverment could not anymore face his past visible balance (the ratio of imports/exports being negative). this fact will be pinpointed by the 1st generation of the currency crisis, however there is 3 currencies crisis which will be follow in a recents future in order to pinpoint the battle between US EU and China due to a politic of maiting RMB at a fixed exchange rates.
In the case of china, and managing his reserve for the past 20 years inside Fixed exchanges rates policy has built the biggest of the world with 1.054 tonnes of gold and 800 billions $ of Treasury bills.
the article shown the paradox of the economy within actual situation in the case of chinese huge growth could lead to weak in the future by making hyperinflation and disparty between rich and poor people. Following by the example of Argentina with in 2001 when the governement did the same as china nowdays by controlling his value of his currency (fixed exchange rates) by mainting a positive balance of payment therefore by putting liquidy inside the economy,not printing any money but by consolidate his reserve. the bulle was declare when the goverment could not anymore face his past visible balance (the ratio of imports/exports being negative). this fact will be pinpointed by the 1st generation of the currency crisis, however there is 3 currencies crisis which will be follow in a recents future in order to pinpoint the battle between US EU and China due to a politic of maiting RMB at a fixed exchange rates.
In the case of china, and managing his reserve for the past 20 years inside Fixed exchanges rates policy has built the biggest of the world with 1.054 tonnes of gold and 800 billions $ of Treasury bills.
