Evolution of the exchange regime in the reform era : the transition to an equilibrium exchange rate : developments since mid-2005 -- Policy challenges under the existing currency regime : independence of monetary policy : rebalancing economic growth : potential effects on the banking system :...

This working paper assesses the progress made in improving China's exchange rate policies over the past five years (that is, since 2002). I first discuss four indicators of progress on China's external imbalance and its exchange rate policies - namely, the change in (and level of) China's global...

Cover -- Contents -- Preface -- Acknowledgments -- Introduction -- Chapter 1 Evolution of China's Exchange Rate Regime in the Reform Era -- Transition to an Equilibrium Exchange Rate -- Developments since Mid-2005 -- Chapter 2 Challenges Facing the Chinese Authorities under the Existing Currency...