Economic Disturbances and Equilibrium in an Integrated Global Economy

Chapter 43

China in a Global Economy: An Interpretation

Abstract

In the next few chapters, we explore how the different transmission mechanisms and relationships outlined in the previous chapters to facilitate our understanding of a nation’s international accounts and some of its key macroeconomic variables. Though we use China as our example, the framework we have outlined should be useful to those who are focused and interested in analyzing, understanding, and anticipating global trends that impact the local economy and the financial markets. To understand where China may be heading monetarily, it is important to understand where it is coming from. For that reason, we focus on China’s monetary policy over the last two or three decades. In the ...