This article takes a closer look at the process of China's foreign exchange reform since 1979. It describes major policy changes, assesses their effects, and identifies challenges in furthering the process of capital account liberalization. The paper concludes that the core of China's foreign...

1. Introduction -- 2. Measuring and accounting for the output of a nation : GDP -- 3. China and the United States and the balance of payments -- 4. Long-run economic growth -- 5. Consumption and savings in China and the United States -- 6. China's path of investment -- 7. Monetary policy and...