Why RMB should be more flexible

Purpose – This report examines the recent developments and trends relating to the Chinese government’s policy actions and the key issues that determine the choice of exchange rate regime in China. An up-to-date “stock-take” of the economic indicators is conducted to determine what is suitable for China in light of the rapidly evolving nature of the world economy and trading environment. This paper discusses the role of economic development, trade competitiveness, capital flow, foreign exchange reserve, and RMB internationalization in the determination of the RMB exchange rate regime. Design/methodology/approach – This research uses an inductive approach to gain a fine-grained understanding of the complex, multifaceted aspects of China’s exchange rate policy. A combination of statistical analysis, including basic descriptive statistics, trend analysis, and a correlation study are used to explore the association between various indicators and their implications. The report also draws on analysis of a broad range of data sources and the work of numerous researchers and research institutions. Findings – A more flexible exchange rate regime can play a complementary role towards rebalancing the Chinese economy by raising the buying capacity of families, rebalancing growth towards domestic consumption, and reducing reliance on export. China’s price elasticity of the demand for exports was relatively low that the appreciation of the Chinese currency has almost no influence on optimizing China’s trade balance. A more flexible two-way flow in RMB would be suitable under the current cash flow scenario in China. Reduced intervention will facilitate further adjustment in reserves. Lastly, in the early stage of RMB internationalization, flexibility in the exchange rate is one of the factors that influences its growth prospect as a reserve currency. Research limitations/implications – The findings and conclusion are derived based on the latest empirical information, statistical evidence, and economic theory. This inquiry does not build on a theory, and aims to neither verify a theory, nor test hypotheses. Rather, it aims to demonstrate, assess, and explain significant roles that various economic factors play in shaping the future exchange rate regime of China. Originality/value – This paper presents the rationale behind a more flexible two-way exchange rate, by assessing the latest empirical data and theoretical explanation that support such a move. Keywords Foreign exchange, Financial markets and the macroeconom

Socialist workers - Is China’s labour market at a turning-point?

This document is part of a digital collection provided by the Martin P. Catherwood Library, ILR School, Cornell University, pertaining to the effects of globalization on the workplace worldwide. Special emphasis is placed on labor rights, working conditions, labor market changes, and union organizing.CLW_2010_Report_China_socialist_workers.pdf: 9 downloads, before Oct. 1, 2020

A low carbon investment plan for South Australia

On 1 December 2015, the South Australian Government released a Low Carbon Investment Plan for South Australia, a landmark document which sets out how the state will achieve $10 billion in low carbon generation by 2025. The Plan is built around four key strategies for supporting low carbon generation investment in South Australia. These are a competitive policy and regulatory environment; providing information for investment; demonstrating use on the government’s own assets or using government procurement to sponsor uptake by others; and  facilitating projects to leverage external funding.   Some key initiatives under the Plan include The release of the Bio-energy Roadmap for South Australia which the first stage in further developing South Australia’s bio-energy industry. The information released includes analysis of South Australia’s bio-energy potential and spatial data as a first step towards creating a substantial and sustainable bio-energy industry. An invitation to the energy industry to respond to an Expression of Interest for Low Carbon Electricity Supplies and Services to service up to 100% of the South Australian Government’s electricity needs. An expression of Interest for reducing emissions from the Government’s vehicle fleet  and support for Adelaide’s first electric car share initiative incorporating solar PV and battery storage in the CBD

Australian industry report 2014

The Australian Industry Report is a new initiative of the Department of Industry’s Office of the Chief Economist. The report provides an overview and analysis of the major economic factors affecting Australia’s industries. The Australian economy is home to some 2 million actively trading businesses. Together with the public sector, they employ over 11.5 million persons and produce goods and services valued at around $1.6 trillion per annum. Our workforce is highly skilled; our firms highly productive and as a result, Australian income levels are higher today than they have ever been. Achieving this has not come without its challenges. Our economy has had to adapt and respond to a range of economic and demographic pressures. Workers and industries have had to retrain and regroup in the face of significant structural change. In addition, the future poses some considerable challenges that will need to be addressed. How can firms remain competitive when facing a persistently high Australian dollar? How can businesses compete against those in low wage countries? What will drive productivity growth over the next decade? How will the economy manage an ageing population? What happens after the Mining boom? These are some of the questions that provide the economic backdrop for Australia’s industries. And while they are challenges to be overcome, they are also opportunities to be pursued. This highlights report provides a brief snapshot of the market settings facing the Australian economy. It summarises the findings of a new initiative from the Department of Industry’s Office of the Chief Economist, the Australian Industry Report . The inaugural report comes at a time of major structural adjustments. Reflecting this, the focus of this year’s report is structural change