China's People's Bank and Prudent Monetary Policy

The People's Bank of China has released a report that, among other things, formalizes the government's decision to switch to a "prudent" monetary policy in 2011 amid intensifying inflation. However, this announcement does not mean the end of disagreements and mixed messages over the country's economic direction, and institutional battles will continue to be fought, especially in the lead up to the March session of the National People's Congress.