The Appropriate Policy Mix for China
This paper discusses the appropriate policy mix for China in the post crisis period. As is well known, China has achieved a remarkable economic growth rate over the last 30 years using an export-led growth strategy. To implement this strategy, the Chinese authorities have pegged their currency to the US dollar and accorded favorable treatments to large corporations and wealthy individuals at the expense of ordinary workers and small and medium sized enterprises. However, this strategy is no longer appropriate. To continue developing, China should adopt a more flexible currency regime, use the excess profits of SOEs to invest in health care, pensions and educations, and liberalize the financial system. In the medium term, this policy mix will help to reduce global imbalances and to spread the fruits of the Chinese miracle to hundreds of millions of poor rural citizens and struggling urban migrants.
|Date of creation:||Dec 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rieti.go.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hayakawa, Kazunobu & Kimura, Fukunari, 2009.
"The effect of exchange rate volatility on international trade in East Asia,"
Journal of the Japanese and International Economies,
Elsevier, vol. 23(4), pages 395-406, December.
- Kazunobu HAYAKAWA & Fukunari KIMURA, 2008. "The Effect of Exchange Rate Volatility on International Trade in East Asia," Working Papers d003, Economic Research Institute for ASEAN and East Asia (ERIA).
- Yuqing Xing, 2010. "Consumption, Income Distribution, and State Ownership in the People’s Republic of China," GRIPS Discussion Papers 10-18, National Graduate Institute for Policy Studies.
- THORBECKE, Willem & Hanjiang ZHANG, 2008.
"The Effect of Exchange Rate Changes on China's Labor-Intensive Manufacturing Exports,"
08038, Research Institute of Economy, Trade and Industry (RIETI).
- Willem Thorbecke & Hanjiang Zhang, 2009. "The Effect Of Exchange Rate Changes On China'S Labour-Intensive Manufacturing Exports," Pacific Economic Review, Wiley Blackwell, vol. 14(3), pages 398-409, 08.
- Willem Thorbecke & Gordon Smith, 2010. "How Would an Appreciation of the Renminbi and Other East Asian Currencies Affect China's Exports?," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 95-108, 02.
- Shujiro Urata & Toshiyuki Matsuura & Yuhong Wei, 2006. "International Intrafirm Transfer of Management Technology by Japanese Multinational Corporations," Discussion papers 06006, Research Institute of Economy, Trade and Industry (RIETI).
When requesting a correction, please mention this item's handle: RePEc:eti:polidp:10002. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)
If references are entirely missing, you can add them using this form.