Zhang, Z. (2001) 'Choosing an exchange rate regime during economic transition : the case of China.', China economic review., 12 (2-3). pp. 203-226.
The choice of an appropriate exchange rate regime during economic transition is investigated through the case of China's 1994 reform programme. Within a game-theoretic framework, the paper compares welfare under alternative policy regimes. While not upsetting government welfare, China's exchange rate unification through a floating rate has compelling benefits as a means of aborting the multiple practice. Given the choice of a flexible rate regime for convertibility, numerical simulations show a managed floater is favourable and may additionally mitigate the credibility problem associated with convertibility. Simulation outcomes also reveal China's policy preference is to place a higher weight on competitiveness than on inflation.
|Keywords:||China, Exchange rate policy, Economic transition.|
|Full text:||Full text not available from this repository.|
|Publisher Web site:||http://dx.doi.org/10.1016/S1043-951X(01)00051-7|
|Record Created:||21 Jun 2007|
|Last Modified:||19 Mar 2010 16:19|
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