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Monetary Policy Reform Fraught with Risks

In: China’s Impossible Trinity

Author

Listed:
  • Chi Lo

    (Economic Strategist)

Abstract

As financial liberalisation intensifies, China needs to reform its monetary policy framework commensurate with structural changes in the economy to ensure effective policy management in preparation for capital account convertibility. Without sufficient monetary policy tools, China will not be able to manage the economic volatility stemming from its transition to a market-driven model under the Impossible Trinity paradigm.

Suggested Citation

  • Chi Lo, 2015. "Monetary Policy Reform Fraught with Risks," Palgrave Macmillan Books, in: China’s Impossible Trinity, chapter 7, pages 109-128, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-53879-6_7
    DOI: 10.1057/9781137538796_7
    as

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