The United States' pattern of consumption funded by credit has an impact on its currency's exchange rate, ECB's governing council member Nout Wellink said on Thursday.
The sub prime crisis was an expression of living above its means. That then translates into the exchange rate versus foreign currencies, Wellink said during a symposium of the Dutch central Bank, which he heads.
Wellink also said China had not sufficiently shown willingness to let its currency, the yuan, appreciate versus other currencies.
The choice to build up excessive reserves, which has occurred in a number of countries, is also related with an unwillingness to let their own currencies appreciate. The Chinese have insufficiently let their currency appreciate, Wellink said.
To become less dependent on exports and less artificially manipulate their currency, they should expand domestic policy to offer social security and boost consumption. This policy should be implemented a little bit faster, Wellink said.
(Reporting by Gilbert Kreijger; Editing by Toby Chopra)