Do China's capital controls still bind?
Subtitle: implications for monetary autonomy and capital liberalisation
By: by Guonan Ma and Robert N. McCauley.
Contributors: McCauley, Robert N. 1953-; Bank for International Settlements. Monetary and Economic Dept.
Series: BIS working papers -- no. 233
Publisher: Bank for International Settlements
Published: 2007
Place of publication: Basel, Switzerland
Language: eng
Format: Electronic resource
Description: The paper argues that China's capital controls remain substantially binding. This has allowed the Chinese authorities to retain some degree of short-term monetary autonomy, despite the fixed exchange rate up to July 2005. Although the Chinese capital controls have not been watertight, we find sustained and significant gaps between onshore and offshore renminbi interest rates and persistent dollar/renminbi interest rate differentials during the period of a de facto dollar peg. While some cross-border flows do respond to market expectations and relative yields, they have not been large enough to equalise onshore and offshore renminbi yields.
Notes: Title from PDF file (viewed on Dec. 27, 2007).

"Monetary and Economic Department."

"August 2007."

Includes bibliographical references.

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