Title: Analysis of Currency Substitution and Monetary Policy Independence of China
Abstract:The so-called currency substitution is that when a country's residents lose their confidence on the stability of local currency, or when the adjusted return of local currency on assets is lower than t...The so-called currency substitution is that when a country's residents lose their confidence on the stability of local currency, or when the adjusted return of local currency on assets is lower than the normal level, the large-scale money is exchanged, thus the foreign currency wholly or partly substitute the local currency functions, such as the store of value, intermediary of exchange and measure of value. This paper analyzes the influence on monetary policy independence in the course of China foreign exchange system reform, and initiates the discussion of how central bank keeping monetary policy independence in China.Read More
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
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