China urges caution in economic policy

Chinese central bank officials are calling on developed countries for caution in their macro-economic policy. It's feared their loose monetary policy may result in rampant capital flows to developing countries.

The appeal came from a senior official from the People's Bank of China, Xie Duo, at the G24 nations' ministerial meeting in Washington. IMF Managing Director Dominique Strauss-Kahn agrees. Strauss-Kahn says emerging economies are facing risks of asset bubbles and inflation due to ample liquidity around the globe.

Chinese central bank officials are calling on developed countries for caution in  their macro-economic policy.