No. 339, Oct 29(1)

Highlights from The Economic Observer, issue no. 339, October 29th 2007

Editorial: Make Room for Monetary Policy
Cover, editorial
Inflation is expected wane over the next few months, but excess liquidity will continue to worsen due to hot money and a ballooning trade surplus. Although a metered appreciation of the yuan over the past two years has eased domestic industries into new competitive environments, its rigidness has led to these other problems. It's time to worry less about caving to outside pressure on exchange rate policy and more about acting rationally to mend the economy.
Original article: [Chinese]

Source: Banking President Shift Marks Reforms
Cover story
Sources say Su Ning, vice-president of the People's Bank of China, will take over the presidency of the China Development Bank. His coming is intended to kick-start the bank's reform, as it intends to become a totally commercialized credit institution within the medium-term.
Original article: [Chinese]

The Heavy Schoolbag
Cover, human interest
Since 1982, the government has issued many documents calling for "reducing burdens" in education. Despite this, students in middle school are packing more books than before in their schoolbags. Why has this happened?
Original article: [Chinese]

Massive Surplus in the State Revenues
Cover story
For the first time, the Ministry of Finance has voluntarily consulted the Nation People's Congress over this year's surplus balance in state revenues before acting on the issue. By the Ministry's count, this year's surplus is 700 billion yuan. Policymakers are deadlocked over how best to approach the situation.
Original article: [Chinese]