The flow direction of world capital will partially change after the "9.11 incident", and some of it will flow to Hong Kong and then to the Chinese inland, this is because currently China is experiencing a strong momentum of development.

The above was the view expressed in his speech given at a recent high and new technology forum by Professor Robert Mundell from Columbia University of the United States, the winner of Nobel Economy Prize in 1999.

He predicted that the world economy, effected by the terrorist incident, would slow down, but would possibly see a step-by-step growth after the middle period of next year.

In his speech the professor made a comprehensive explanation of his theory on the capital market and currency. He said that the robust growth of the Chinese economy over the past 20 years and more has shocked the world, he believes China will play an increasingly important role in the world economy, especially the Asian-Pacific economy.

He shows strong confidence in China's economy, because, in his eyes, the Chinese economy is a miracle. He criticized the viewpoint of allowing the devaluation of the RMB. He said China tided over difficulties during the 1997 Asian financial crisis by relying on its clearly defined monetary policy and high amounts of foreign-exchange reserves. The RMB was then not devalued and now it is all the more unnecessary to devalue the RMB, he thinks China's monetary policy is a success.

(People's Daily October 19, 2001)