US global monetary responsibility - what do we owe the Chinese

China central Banker Zhou, "(Fed) may have more responsibility not only to consider the US economy but also the global economy."

This responsibility issue has been recurring theme with the Chinese. However, it is less clear what that should mean. With the yuan tied closely to the dollar and the Chinese currency not freely floating and with tight capital restrictions, the Chinese will import inflation from the US. However, without the aggressive easing of the Fed, the global economy will be in worse shape. The value of Treasury holdings will fall if there is a dollar depreciation, but US growth is what the emerging markets would like at this time. Of course, the issue is balance and at this time the Bank of China does not want the US to forget balance.