Remaking Monetary Policy in China

1. Front Matter

   Pages i-xi

   PDF

2. Introduction

   • Michael Beggs, Luke Deer

   Pages 1-7

3. A Bank-Dominated Financial System

   • Michael Beggs, Luke Deer

   Pages 9-20

4. Targets: Why Money and Credit?

   • Michael Beggs, Luke Deer

   Pages 21-30

5. Transmission I: Inside the Banking Black Box

   • Michael Beggs, Luke Deer

   Pages 31-44

6. Transmission II: Liquidity and Lending

   • Michael Beggs, Luke Deer

   Pages 45-66

7. Instruments I: Sterilisation and Interest Rate Controls

   • Michael Beggs, Luke Deer

   Pages 67-82

8. Instruments II: The Evolution of Policy Strategy

   • Michael Beggs, Luke Deer

   Pages 83-100

9. Conclusion

   • Michael Beggs, Luke Deer

   Pages 101-114

10. Back Matter

    Pages 115-125

    PDF

This book covers the recent history of Chinese monetary policy. While most current work focuses on This book traces and explains the evolution of Chinese monetary policy in the years before 2008. The turn towards interest rate deregulation and market-oriented policy in China in recent years is often seen as a break with former command-and-control policy norms, in favour of Western central banking norms. We argue that Chinese monetary policy already went through a transformation under the influence of ‘new consensus’ macroeconomics after 1998, but that this surprisingly led to increased reliance on direct banking controls in the 2000s. Therefore, many of the controls that look to many like a remnant of central planning are in fact an outcome of an earlier attempt to ‘rationalise’ monetary policy, in unusual Chinese conditions. Specifically, policy returned to direct controls because of an underdeveloped interbank money market, and a glut of bank liquidity associated with enormous foreign exchange inflows in the mid-2000s.

• New Macroeconomic Consensus
• New Macroeconomic Consensus in China
• Bank-dominated Financial System
• Monetary Policy in China
• Inside the banking black box in China
• The evolution of policy strategy in China
• Implementation of monetary policy in China
• PBoC and the Chinese Banking System
• Chinese Monetary Transmission Mechanism
• Chinese Approach to FX Markets
• China's Quantitative Monetary Control Methods
• Chinese Macro Management
• Chinese Exchange Rate Management
• Chinese Trade Arrangements
• Bank-dominated Financial System and China

• Political Economy, University of Sydney, Sydney, Australia

  Michael Beggs

• Finance, University of Sydney, Sydney, Australia

  Luke Deer

Michael Beggs is Senior Lecturer in Political Economy at the University of Sydney, Australia.


Luke Deer is a Research Affiliate in Finance at the University of Sydney Business School, Australia.

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