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The Money Supply Process and Monetary Policy in China

The Money Supply Process and Monetary Policy in China

Paperback

Series: Europaeische Hochschulschriften / European University Studie, Book 2931

EconomicsInvesting & FinanceMiscellaneous Languages

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ISBN10: 3631502168
ISBN13: 9783631502167
Publisher: Peter Lang
Published: Sep 26 2002
Pages: 234
Language: English
This book applies both the mechanistic money multiplier model and the credit market theory to analyse the money supply process and monetary policy in China. It examines the effectiveness of the central bank's monetary policy instruments, and assesses the possible monetary policy strategy and operating procedure. The central theme is that the money supply has endogenous features due to the lack of an interest rate mechanism. Therefore, interest rate liberalisation is the key to improving the effectiveness of monetary policy in China.

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