Economists and policy-makers have long sought the ideal framework for monetary policy as it is arguably one of the most important tools for government to influence the economy. Exchange rate and inflation are believed to be the most appealing anchors for providing guidance to the conduct of...

This article examines China's contemporary macroeconomic controls, highlighting the recent currency revaluation. We suggest that the July 2005 revaluation was inadequate in maintaining a level in line with market expectations, and it has had a negligible effect on exports, imports, job growth,...