Chang, Chun; Liu, Zheng; Spiegel, Mark M. - Federal Reserve Bank of San Francisco - 2013
We examine optimal monetary policy under prevailing Chinese policies> – including capital controls, nominal exchange … rate pegs disrupts its monetary policy, precluding adjustments that could maintain macroeconomic stability following a set … liberalizing either the capital account or the exchange rate. ; Previously titled: Monetary policy in a DSGE model with “Chinese …