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China’s monetary policy since 1948

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  • Joanne GUO

    (Independent Researcher)

Abstract

China’s monetary policy has evolved from obscurity into spotlight due to its torrid economic expansion in recent times, as well as its exchange rate regime that has been under constant scrutiny of its trading partners. While China’s economy is centrally-planned, it is veering more towards a market-based system with goals of stability and growth. With this in mind, this paper is an introspection of China’s monetary policy since the establishment of the People’s Bank of China (PBC) to the present. Additionally, this paper surveys empirical literature on the effectiveness of policy tools undertaken by the PBC. Recommendations are made to Chinese monetary authority on how to navigate the turbulent waves of economic fluctuations with a managed exchange rate, within its borders and beyond.

Suggested Citation

  • Joanne GUO, 2018. "China’s monetary policy since 1948," Journal of Economics Library, EconSciences Journals, vol. 5(3), pages 265-274, September.
    • Handle: RePEc:cvv:journ5:v:5:y:2018:i:3:p:265-274
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    References listed on IDEAS

    as
    1. Burdekin, Richard C.K. & Siklos, Pierre L., 2008. "What has driven Chinese monetary policy since 1990? Investigating the People's bank's policy rule," Journal of International Money and Finance, Elsevier, vol. 27(5), pages 847-859, September.
    2. Yu, Qiao, 1997. "Economic Fluctuation, Macro Control, and Monetary Policy in the Transitional Chinese Economy," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 180-195, October.
    3. Nicholas R. Lardy, 2005. "Exchange Rate and Monetary Policy in China," Cato Journal, Cato Journal, Cato Institute, vol. 25(1), pages 41-47, Winter.
    4. Shujie Yao & Dan Luo & Lixia Loh, 2011. "On China’s Monetary Policy and Asset Prices," Discussion Papers 11/04, University of Nottingham, GEP.
    5. Mr. Bernard J Laurens & Mr. Rodolfo Maino, 2007. "China: Strengthening Monetary Policy Implementation," IMF Working Papers 2007/014, International Monetary Fund.
    6. Yu Guo And Wei Ma, 2016. "Time-Varying Coefficient Taylor Rule and Chinese Monetary Policy: Evidence from the Time-Varying Cointegration," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(4), pages 27-44, December.
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    Keywords

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    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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