RMB Exchange Rate Challenges and Choices of Transformation

Author: Wang Weixu
Publisher:
Publish Date: 2004-03-01
Features: There is an irreconcilable contradiction among a fixed exchange rate, free capital flow, and monetary policy independence. This book uses substantial evidence to argue the relationship between currency appreciation, financial bubbles, and the decline of the manufacturing sector, and deeply analyzes the challenges faced by the RMB exchange rate based on this. The book contends that the essence of the current Sino-US dispute over the RMB exchange rate system is the struggle for control over the RMB exchange rate. If the RMB exchange rate is liberalized, the United States will share control over the RMB exchange rate, and the loss of control over the RMB exchange rate will severely impact China's economic development strategy.