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Whatever You Do, Don’t Say ‘Minsky Moment’: Zhou Xiaochuan Makes The One Mistake You Can’t Make
Let's just be clear: if you are the Governor of the central bank in charge of shepherding the economy that serves as the engine of global growth and trade, and if you are also in charge of defusing what many people believe is the financial equivalent of a nuclear bomb manifested as an elephantine shadow banking complex that no one understands, the very last - and I mean the very last - thing you want to do is say "Minsky Moment" in public.
But that's exactly what the PBoC's Zhou Xiaochuan did
Point taken but not a surprising statement given the PBOC is staffed with traders. Imagine any words of enlightened reality from the lips of the academic Yellen or the lawyer “we have a printing press” Powell? We can only dream. Tho the Fed loves theory so I wish they’d indulge in some Minsky theory a la the PBOC, which is nothing to be complacent about like the markets are.