A US$ 1 Trillion Question: Is The Current Chinese Exchange Rate Regime Sustainable?
Abstract
The recent surge in China’s foreign exchange reserves (one trillion US$ in October 2006), is behind this update analysis of the domestic issues that it raises. The speculation on a future appreciation of the yuan has recently boosted money growth in China. Some controls on capital inflows reduced short-term capital in 2005 and 2006 but this has been compensated for by a surge in the trade surplus. This has resulted in abundant liquidity in China responsible for distortions which this article endeavours to analyse.
Index
- Thématique :
- economie
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Référence électronique
A. Laure Baldi-Delatte, « A US$ 1 Trillion Question: Is The Current Chinese Exchange Rate Regime Sustainable? », China perspectives, n°67, 2006, [En ligne], mis en ligne le 1 juin 2007. URL : http://chinaperspectives.revues.org/document1046.html. Consulté le 11 octobre 2008.