China: Strengthening Monetary Policy Implementation

WPIEA2007014 Image
Price:  $18.00

Author/Editor: Rodolfo Maino, Bernard Laurens
Release Date: © January, 2007
ISBN : 978-1-45186-578-3
Stock #: WPIEA2007014
English
Stock Status: Available

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Description

The People's Bank of China (PBC) has made great strides in modernizing its monetary policy frameworks but their effectiveness will diminish as the sophistication of the economy increases. Empirical evidence supports maintaining a reference to money in China's monetary strategy and enhancing the role of interest rates in its conduct. We advocate adoption of an eclectic strategy involving the monitoring of several indicators, and of a short-term interest rate as the operational target. The PBC should be granted discretion to change its policy rate, and there are no technical obstacles for such a move to occur in the near future.

Taxonomy

Demand for money , Economic policy , Monetary policy




More publications in this series: Working Papers


More publications by: Rodolfo Maino ; Bernard Laurens