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Reform of the RMB Exchange Rates and Banking System in China |
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The purpose of this course is to provide students a general understanding of the RMB (China’s currency) exchange rate regime reform, reform of the banking system, and the development of security markets in China. In each session, the historical development, some basic facts and challenges will all be presented. Based on the above contents, a further topic, "is China in a bubble economy", will be delivered so that the students can combine the financial issues with the economic development in the country. The reform of the three sectors, which were driven by the economic reform, has been the bottle-neck of the economy to some extent. Therefore, the central government and the central bank are faced with the emerging dilemma, i.e., whether monetary policy will work in deflating the bubble and curbing the inflation, or too quick a tightening will pull the economy into a trap. As no textbook is available, the students will get readings from newspapers and academic journals. Classroom discussion will be indispensable for this course.
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