China's exchange rate policy and fiscal expansion

Abstract

Purpose

The purpose of this paper is to present an overview of China's exchange rate policy and fiscal expansion.

Design/methodology/approach

This paper is a reprint of a Financial Times online forum contribution dated 10 February 2009.

Findings

The paper finds that there is a good economic rationale for China's wanting to keep the yuan/dollar rate stable.

Originality/value

This “perspective” piece written by a Professor of Economics is brought to a wider readership via its inclusion in Journal of Chinese Economic and Foreign Trade Studies.

Citation

McKinnon, R.I. (2009), "China's exchange rate policy and fiscal expansion", Journal of Chinese Economic and Foreign Trade Studies, Vol. 2 No. 2, pp. 81-85. https://doi.org/10.1108/17544400910966059