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Title: China's exchange rate system reform : two potential mistakes and the recommended long-term system
Authors: Yip, Paul Sau Leong
Keywords: Social sciences::Economic development
Issue Date: 2016
Source: Yip, P. S. L. (2016). China's exchange rate system reform : two potential mistakes and the recommended long-term system. Singapore Economic Review, 61(2), 1640025-. doi:10.1142/S0217590816400257
Journal: Singapore Economic Review
Abstract: Further to the author's recommended transitory and medium-term exchange rate system reforms that was implemented in China since July 2005, this paper explains that: (1) a long-term reform towards a floating exchange rate system with free capital mobility will cause huge damages to the Chinese economy. It then proposes a long-term exchange rate system that would probably benefit China the most; and (2) there is a serious mistake in China's latest exchange rate policy: The Chinese central bank has mistakenly allowed the renminbi exchange rate to rise with the strong rebound of the US dollar. This will cause not only a substantial drag in China's export and GDP growth, but will also eventually make China's financial and economic system vulnerable to a highly disruptive correction in the renminbi exchange rate.
ISSN: 0217-5908
DOI: 10.1142/S0217590816400257
Rights: © 2016 World Scientific Publishing Company. All rights reserved.
Fulltext Permission: none
Fulltext Availability: No Fulltext
Appears in Collections:SSS Journal Articles

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