Skip navigation
Skip navigation

China's Exchange Rate Policy: The Case for Greater Flexibility

Roberts, Ivan; Tyers, Rod

Description

Since the Asian crisis, the merit of the Chinese government's de facto peg to the US Dollar has been the subject of widening debate. This paper reviews the issues surrounding China's currency regime choice and assesses the case for greater flexibility. Reform era exchange rate policies are examined along with the performance of the economy during and since the Asian crisis. In the Chinese context, the arguments for and against fixed exchange rates are then explained and assessed. Finally, an...[Show more]

dc.contributor.authorRoberts, Ivan
dc.contributor.authorTyers, Rod
dc.date.accessioned2015-12-13T22:36:34Z
dc.date.available2015-12-13T22:36:34Z
dc.identifier.issn1351-3958
dc.identifier.urihttp://hdl.handle.net/1885/76827
dc.description.abstractSince the Asian crisis, the merit of the Chinese government's de facto peg to the US Dollar has been the subject of widening debate. This paper reviews the issues surrounding China's currency regime choice and assesses the case for greater flexibility. Reform era exchange rate policies are examined along with the performance of the economy during and since the Asian crisis. In the Chinese context, the arguments for and against fixed exchange rates are then explained and assessed. Finally, an elemental comparative static macroeconomic model is used to examine the implications of domestic and external shocks under different exchange rate regimes and with differing degrees of capital mobility. The results support the view that more flexibility would be beneficial to China and that this benefit can be expected to increase as capital mobility increases.
dc.publisherBlackwell Publishing Ltd
dc.sourceAsian Economic Journal
dc.subjectKeywords: currency market; exchange rate; fiscal policy; macroeconomics; China China; Exchange rates; Macroeconomic policy
dc.titleChina's Exchange Rate Policy: The Case for Greater Flexibility
dc.typeJournal article
local.description.notesImported from ARIES
local.description.refereedYes
local.identifier.citationvolume17
dc.date.issued2003
local.identifier.absfor140210 - International Economics and International Finance
local.identifier.ariespublicationMigratedxPub5618
local.type.statusPublished Version
local.contributor.affiliationRoberts, Ivan, Reserve Bank of Australia
local.contributor.affiliationTyers, Rod, College of Business and Economics, ANU
local.bibliographicCitation.issue2
local.bibliographicCitation.startpage155
local.bibliographicCitation.lastpage184
dc.date.updated2015-12-11T09:32:28Z
local.identifier.scopusID2-s2.0-0041917322
CollectionsANU Research Publications

Download

There are no files associated with this item.


Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  19 May 2020/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator