The Future of China's Exchange Rate Policy

The authors (fellows at the Peterson Institute for International Economics) conduct an analysis of the past, present, and future of China's exchange rate regime. Three chapters review the evolution of the foreign exchange regime since the beginning of the reform period thirty years ago; examine challenges related to the undervalued exchange rate, the accelerating buildup of foreign exchange reserves, and the recent sharp decline in economic growth; and present a three-stage plan for expediting correction of the renminbi's undervaluation that they contrast favorably with a "stay-the-course" policy. Annotation 2009 Book News, Inc., Portland, OR (booknews.com)