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Overview of the Evolution of China's Central Bank and Monetary Policy: Correlation to the European Union

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  • Skold, Alida S.

Abstract

As an innovator in the financial system, China was the first to use paper currency. Eventually the form of currency was held responsible for devastating inflation and was abandoned during the Ming Dynasty. Going forward in time, uprisings and discontent have emphasized the importance of controlling inflation. The central bank is pivotal in issuing monetary policy to control inflation and to maintain financial stability as the government transforms itself from a planned economy to a mixed market economy. The transforming economy is moving toward a free market system through series of economic reforms. The correlation between China’s structure and the European Union’s structure provides opportunities for further study to determine next steps for both.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33608.

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Date of creation: 17 Jul 2011
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Handle: RePEc:pra:mprapa:33608

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Keywords: China; central bank; monetary policy; inflation; economy;

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  1. Dennis Tao Yang & Junsen Zhang & Shaojie Zhou, 2011. "Why Are Saving Rates so High in China?," NBER Working Papers 16771, National Bureau of Economic Research, Inc.
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