Publication

This paper examines China's post-1990 monetary policy and its emphasis on the rate of money supply growth. The authors apply the 'McCallum rule' to national monetary policy decisions. They argue that monetary policy in China from 1990 - 2003 responded to the gap between the target and actual nominal gross domestic product (GDP) as well as external pressures. The analysis reveals that Chinese inflation and monetary policy outcomes can be understood using a standard monetary approach.