This Paper reviews the controversy over China’s exchange rate regime. Placing the issue in the context of the … literature on exit strategies, it argues that now is the best time for China to exit from its peg. Moving to a managed float …

We use available methods for testing macro models to evaluate a model of China over the period from Deng Xiaoping …

finds that the main shocks hitting China in the crisis were international and that domestic banking shocks were unimportant …. However, directed bank lending and direct government spending was used to supplement monetary policy to aggressively offset … shocks to demand. The model finds that government expenditure feedback reduces the frequency of a business cycle crisis but …

We use available methods for testing macro models to evaluate a model of China over the period from Deng Xiaoping …