su ning : spreading financial knowledge to the chinese people speech by mr su ning, deputy governor of the peoplea€™s bank of china, at the financial knowledge booklet release and donation ceremony, beijing, 18 january 2007. * * * deputy administrator wu shulin, deputy secretary general yang xinli, ladies and gentlemen, good morning. on behalf of the people's bank of china, i warmly welcome all of you to financial knowledge booklet release and donation ceremony. we would like to congratulate everyone who has been directly or indirectly involved in the writing and publishing of the book, and appreciate those who have contributed to the book's writing. leaders of the state council have always attached importance to education of the general public. premier wen jiabao has on many occasions expressed the hope that financial education should be enhanced and popularized, especially through publication of financial knowledge books for the general readership. the financial knowledge booklet, written by the central bank, is dedicated to spreading financial knowledge to the average people, to promoting their ability in managing financial affairs, and to contributing to a harmonious socialist society. finance is at the core of any modern economy. with the improvement of a socialist market economic system and deepening of open - up in china, financial activities have permeated social and economic activities. finance has become increasingly important in adjusting economic activities and in promoting social and economic development, and more closely connected with people's daily life. the public has gradually become consumers of financial products and services and thus become an extensive base for financial security and development. sound performance and healthy growth of the financial sector has a bearing on a country's economic security and social stability, and on the interests of average people. the public's financial knowledge and confidence in financial system is a decisive factor in sound performance and healthy growth of the sector. therefore, financial education to the public, spreading financial knowledge to them, and increasing people's ability in managing their own financials, is of great importance to promoting sound performance and development of financial sector, to safeguarding people's interests, and to building a harmonious socialist society. since reform and open - up, china's financial sector has made substantial progress, and subsequently the chinese people have come to know more about financial products and services. however, as financial education for the average people is still underdeveloped, their financial knowledge and ability to use financial services has lagged behind compared with the sector's development.

not see either of these scenarios in my forecast, so i do not anticipate that further accommodative monetary policy actions will need to be taken. bis central bankers ’ speeches an explicit numerical objective for inflation the past three years have proven to be challenging times for monetary policymakers. we entered unprecedented territory as we employed new policy tools to stem the financial crisis and limit the damage to the economy from the severe economic recession. there was no established framework for making policy decisions in such an environment, and that added to the difficulties in determining appropriate policy. it also created difficulties for the fed ’ s communications. in my view, a high priority for the fed must be to strengthen our monetary policy framework and articulate that framework to the public so that they will better understand the basis for our decisions and be better able to formulate expectations of future policy actions. an important first step in that direction is for the federal reserve to adopt an explicit numerical objective for inflation. the explicit inflation goal would help to anchor inflation expectations, raise policy transparency, and increase the central bank ’ s accountability for its actions. there is considerable evidence that countries that have adopted such an objective as a cornerstone of their monetary policy decision - making have had more success at achieving price stability without any deterioration in the stability of real activity. in the united states, congress has given the fed a mandate to promote the goals of maximum employment, stable prices, and moderate long - term interest rates. price stability is the most effective way for monetary policy to promote the other two goals. thus, by helping the fed achieve and maintain price stability, an explicit inflation objective would help the fed promote all three of the goals set forth by congress. for nearly 20 years, i have advocated that the fed make explicit its commitment to a numerical inflation objective in support of its full mandate. i believe that now is an opportune time to do so. first, it will increase the credibility of our commitment to keeping prices stable even as we employ new, less familiar policy tools. second, we are confronting an environment where some may be questioning the ability or resolve of the government to address our long - run fiscal problems. in such an atmosphere of uncertainty, being explicit about our inflation goal will underscore the fed ’ s commitment not to succumb to external pressures to use inflation as a solution to the country ’ s long - run deficit problem. this will help anchor inflation expectations, which is critical because an undesirable rise or fall