China's Exchange Rate Regime

The imbalance between China’s currency, the RMB, and those of other countries is widely regarded as a major problem for the world economy. This book reports on a major research project undertaken following the 2005 exchange rate reform to assess the impact on China’s economy. It concludes that the policies pursued so far have been correct, and that further reform, both to the exchange rate, and to the system overall, would be desirable, but that any reform should be gradual and incremental, preserving economic stability, and integrating changes with reform in other parts of the economy.