by Sau Leung Yip (Nanyang Technological University, Singapore)

This book is divided into two parts. The first part documents the rationales and considerations behind China's exchange rate system reform announced on 21 July 2005. It also discusses the actual implementation and achievements of the transitional reform as well as some subsequent mistakes committed by China's central bank. It also presents the author's proposed supplementary measures that could help the exchange rate system reform, and at the same time increase China's immunity and resilience against economic crises in future.

The second part provides an updated discussion on China's economic performance and macroeconomic risk since the transitional reform was announced. With updated, insightful and thorough discussions, this book equips readers with a very good understanding of China's macroeconomic state and challenges.

• Theoretical Design and Actual Implementation of the Reform:
  • Macroeconomic Conditions and Debate Before the Reform
  • Transitional, Medium-Term and Long-Term Designs of the Reform
  • Supplementary Measures that Could Help the Reform
  • First Stage Reforms During the Transitional Period
  • Second Stage Reforms
• China's Economic Performance and Macroeconomic Risk After the Transitional Reform:
  • Impacts of Capital Inflows and the Related Policy Measures
  • China's Foreign Reserves and External Trade: Some Misconceptions and Their Policy Implications
  • China's Stock Market Bubble and Her Lessons of Bubble Squeezing Strategies
  • China's Property Inflation and Its Solution
  • General Price Inflation in 2007
  • Global and Domestic Economic Slowdown in 2008-10: Role of Fiscal and Monetary Policies
• Conclusions, Outlooks and Lessons:
  • Risk of Rampant Asset Inflation and Big Cycle of Exchange Rate During the Recovery Period
  • The Chance of An Eventually Successful or Unsuccessful Exchange Rate System Reform in China
  • Lessons to Other Economies on Exchange Rate System Reform, Banking Reform, Asset Inflation and Avoidance of Economic Crises
  • China's Experience as Evidence to Economic Theories and Debates