Managing Capital Flows: The Case of the People’s Republic of China
 The relatively successful management of cross-border capital flows has enabled the People's 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 PRC's 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 People's Bank of China (PBOC) to implement an independent monetary policy to sustain the economy's growth into the next decade.
Download this Discussion Paper [ PDF 241.5KB| 37 pages ].
Post a Comment | We welcome your feedback on this publication. Post a comment. ADBI is not obliged to acknowledge or publish comments and may abridge or edit them before web posting. |
Comment(s)
There are [0] comment(s) for this entry. Post a comment.
|
The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
|
|
About ADBINews & EventsSpecial ProgramsPartnerships
Publications
Back to Top
