Advertisement

China’s Future Monetary Policy

Abstract

This final chapter will focus on examining China’s monetary policy evolution and exploring the alternatives for its future policy framework as it moves towards the Impossible Trinity eventuality. China’s economy may be many years away from full operation in the new paradigm, where capital account convertibility will force Beijing to choose between controlling the exchange rate and the interest rate. However, the process of moving towards it has begun slowly. As discussed in the previous chapters, during this transitional stage, China will be facing daunting challenges on making the necessary monetary policy and economic structural adjustments to tackle the inevitable policy choice between monetary autonomy and exchange-rate control when its capital account is fully opened.

Keywords

Interest Rate Monetary Policy Central Bank Money Supply Monetary Aggregate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Chi Lo 2015

Authors and Affiliations

  • Chi Lo
    • 1
  1. 1.Economic StrategistHong Kong

Personalised recommendations