Zhou Warns China Should Defend Against Threat of 'Minsky Moment'
- PBOC governor warns optimism in good times can fuel tensions
- Money supply growth picked up as economy expanded as forecast
PBOC's Zhou Say Yuan Trading Not a Current Focus
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People’s Bank of China Governor Zhou Xiaochuan warned Thursday against excessive optimism that could spur a sudden collapse in asset prices, adding to the caution top leaders have expressed this year as they redouble efforts to keep rising debt from derailing growth.
Zhou cited a concept known as a "Minsky Moment," a plunge in asset values following unsustainable gains or the exhaustion of credit growth, named for Hyman Minsky, an economist who argued that long bull markets can lead to major collapses.