Putting the Cart Before the Horse? : Capital Account Liberalization and Exchange Rate Flexibility in China /

This paper reviews the issues involved in moving towards greater exchange rate flexibility and capital account liberalization in China. A more flexible exchange rate regime would allow China to operate a more independent monetary policy, providing a useful buffer against domestic and external shocks...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Prasad, Eswar
مؤلفون آخرون: Rumbaugh, Thomas, Wang, Qing
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2005.
سلاسل:IMF Policy Discussion Papers; Policy Discussion Paper ; No. 2005/001
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper reviews the issues involved in moving towards greater exchange rate flexibility and capital account liberalization in China. A more flexible exchange rate regime would allow China to operate a more independent monetary policy, providing a useful buffer against domestic and external shocks. At the same time, weaknesses in China's financial system suggest that capital account liberalization poses significant risks and should be a lower priority in the short term. This paper concludes that greater exchange rate flexibility is in China's own interest and that, along with a more stable and robust financial system, it should be regarded as a prerequisite for undertaking a substantial liberalization of the capital account.
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وصف مادي:1 online resource (32 pages)
التنسيق:Mode of access: Internet
تدمد:1934-7456
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students