On "moderately Tight" Monetary Policy

Since 1998 the Chinese government has been adhered to the policy of "steady currency". In 2007, the currency policy of "steady and suitable control" has been introduced, which is the initiative since 1998. Such a change attracts attention from both domestic and overseas. How will the government deal with the problems such as trade deficiency, too fast-increasing investment and over-fluency by means of macro-control? The thesis tries to find the answer by analyzing the new policy on currency. The thesis analyses theories on currency. Then it analyses the currency policy itself. Firstly, the background of the policy is presented. Then, the implementation and effect of the policy is studied. Finally, suggestions to the improvement of the currency policy are made on the basis of enlighten from the above analysis.