| The Future of China's Exchange Rate Policy Contributor(s): Goldstein, Morris (Author) |
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ISBN: 0881324167 ISBN-13: 9780881324167 Publisher: Peterson Institute for International Economic OUR PRICE: $20.74 Product Type: Paperback - Other Formats Published: June 2008 Annotation: Over the past five years China has emerged as the world's largest global surplus economy; indeed by 2007-08 the size of its surplus relative to its GDP was of a magnitude unprecedented for a large trading economy. This study provides a comprehensive analysis of the key economic challenges facing the Chinese authorities in light of the still undervalued exchange rate, the large build-up of foreign-exchange reserves, and more recently, the sharp decline in economic growth. It analyzes the implications of China's exchange-rate policy for the effectiveness of monetary policy, the transition to a commercially oriented banking system, the evolving structure of output and demand, and the risk of protectionism abroad. The policy-options portion of the study takes account of the significant real-effective of the RMB over the past fifteen months and will contrast the pros and cons of a "stay-the-course" policy with that of a bolder, "three-stage" approach. |
| Additional Information |
| BISAC Categories: - Business & Economics | Money & Monetary Policy - Business & Economics | Foreign Exchange - Business & Economics | International - Economics |
| Dewey: 332.456 |
| LCCN: 2009022961 |
| Series: Policy Analyses in International Economics |
| Physical Information: 0.29" H x 6.28" W x 9.05" (0.45 lbs) 124 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: Over the past five years China has emerged as the world's largest global surplus economy; indeed by 2007-08 the size of its surplus relative to its GDP was of a magnitude unprecedented for a large trading economy. This development is especially surprising since in the first twenty-five years of economic reform China's trade and current account surpluses were quite small by East Asian standards, averaging less than 2 percent of GDP. This study provides a comprehensive analysis of the key economic challenges facing the Chinese authorities in light of the still undervalued exchange rate, the large build-up of foreign exchange reserves, and more recently the sharp decline in economic growth. It analyzes the implications of China's exchange-rate policy for the effectiveness of monetary policy, the transition to a commercially oriented banking system, the evolving structure of output and demand, and the risk of protectionism abroad. The policy-options portion of the study takes account of the significant real effective appreciation of the renminbi over the past fifteen months and will contrast the pros and cons of a "stay-the-course" policy with that of a bolder, "three-stage" approach that would seek to maintain recent progress and to reduce even further the undervaluation of the renminbi. |