As China's economy becomes more market based and continues its rapid integration into the global economy, having an independent and effective monetary policy regime oriented to domestic objectives will become increasingly important. Employing modern principles of monetary policy in light of the...

Intro -- Contents -- I. INTRODUCTION AND OVERVIEW -- II. LOW INFLATION OBJECTIVE AS NOMINAL ANCHOR -- III. PRINCIPLES OF MONETARY POLICY GEARED TOWARD TARGETING INFLATION -- IV. INSTITUTIONAL SUPPORT FOR INDEPENDENT MONETARY POLICY -- V. MONETARY AND BANKING INSTITUTIONS IN CHINA -- VI....