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Essay

Chinese Economic Reform

Essay specific features

 

Issue:

Social Issues

 

Written by:

Steven T

 

Date added:

September 11, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 655

 

Was viewed:

4933 times

 

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Essay content:

Inflation coupled with exchange rate fluctuations prompted the People’s Bank to implement a tightening of monetary policy. By adjusting the reserve requirement, the central bank lending rate, and by conducting open market operations, the People’s Bank began targeting money supply (Chow). The result was a Chinese economy with a rapid growth rate and a healthy inflation rate: “Moreover, the retail price and the consumer price plunged to 0...
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The result was a Chinese economy with a rapid growth rate and a healthy inflation rate: “Moreover, the retail price and the consumer price plunged to 0.8 percent and 2.8 percent respectively in 1997. Yet China still maintained an 8.8 percent economic growth rate that year (Gen-you).” The ability of the People’s Bank to successfully curtail inflation illustrates that monetary policy has impacted China’s real economic growth...
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