The future of China's exchange rate policy

Evolution of China's exchange rate in the reform era

Transition to an equilibrium exchange rate

Developments since mid-2005

Challenges facing the Chinese authorities under the existing currency regime

Independence of monetary policy

Rebalancing economic growth

Potential effects of Renminbi appreciation on China's banking system

External adjustment, global imbalances, and the risk of protectionism

Policy implications and options

The stay-the-course strategy

The three-stage approach.