Contents

Preface page ix

Introduction: China Today and Lessons from the Past 1

PART I CHINA'S EXCHANGE RATE REGIME AND MONETARY POLICY

1 The Renminbi-US Dollar Exchange Rate Controversy 11

2 China's Reserve Buildup and Global Imbalances 33

3 Combatting Inflation and Deflation 55

4 People's Bank of China Policymaking and External Pressures 76

with Pierre L.

PART II THE IMPORTANCE OF INTERNATIONAL FACTORS, PAST AND PRESENT

5 US Pressure on China and Hong Kong in the 1930s 95

6 Inflation Transmission to Taiwan in the 1940s 118

with Hsin-hui I. H. Whited

7 WTO Challenges and China's Banking Sector Today 136

with Emily Kochanowicz

PART III THE PEOPLE'S REPUBLIC'S ROLE WITHIN GREATER CHINA AND ASIA

8 Asset Market Expansion and Shanghai vs. Hong Kong Listings of

ChineseFirms 165

with Gregory C. Arquette and William O. Brown, Jr.

9 EconomicInterdependencewithTaiwan 188

with Hsin-hui I. H. Whited

viii

Contents

10 ConclusionsandFutureprospectsfortheRenminbi 219

References 227

AuthorIndex 249

SubjectIndex 255