From People’s Daily:
In a recent exclusive interview with People’s Daily, Mr. Zhou Xiaochuan, Governor of China’s central bank, unraveled all pending questions concerning the multifaceted financial life in China’s economy.
Zhou first rejected the view that the money supply was too tight. As it takes time to have a policy take effect, he believed that the money supply was generally appropriate, which would be felt soon. And the so-called tight liquidity in some regions and enterprises, in his opinion, was actually caused by their big budget projects and inflated inventories. He acknowledged there was problem in the structure of the money supply.
The full transcript of the interview will be posted n People’s Daily Online.