Managing Capital Flows: The Case of the People’s Republic of China

×

Error message

  • Deprecated function: Function create_function() is deprecated in require_once() (line 591 of /var/www/eaber.org/includes/cache.inc).
  • Deprecated function: Function create_function() is deprecated in require_once() (line 591 of /var/www/eaber.org/includes/cache.inc).
Author: 
Yongding Yu
Description: 
ADB Institute Discussion Paper No. 96
JEL codes: 
Organisation: 
Abstract: 
The relatively successful management of cross-border capital flows has enabled the Peoples Republic of China (PRC) to achieve an extremely high average growth rate of more than 10 percent while keeping inflation under control. The management of cross-border capital flows is an indispensable element of macroeconomic stability. In order to cool down the overheating economy, the PRC government will continue to implement a tight monetary policy. In the face of possible further cuts in US interest rates, the PRCs monetary tightening is becoming increasingly difficult. Hence, the PRC must maintain capital controls whenever possible, and improve its management of cross-border capital flows, to enable the Peoples Bank of China (PBOC) to implement an independent monetary policy to sustain the economys growth into the next decade.
Error | EABER

Error

The website encountered an unexpected error. Please try again later.