CONFERENCE

China's Exchange Rate Policy

Wu Xiaoling, Deputy Governor of the People’s Bank of China

Peterson Institute for International Economics, Washington, DC

October 19, 2007

Summary

Wu Xiaoling, Deputy Governor, People's Bank of China, at the Peterson Institute

Madame Wu Xiaoling, Deputy Governor of the People's Bank of China, delivered the keynote address at the Peterson Institute conference on China's Exchange Rate Policy on October 19. About 25 distinguished speakers, including several Institute senior fellows, representing a variety of views, gathered for the all day event to analyze various aspects of the ongoing controversy surrounding China's exchange rate policies and to suggest appropriate policy prescriptions. Presenters covered monetary policy independence and the currency regime; proposed rebalancing of China's growth (with and without much renminbi appreciation); estimation of the equilibrium exchange rate for the renminbi; management of China's international reserves; influence of the renminbi on other countries' exchange rate policies; currency bills in the US Congress; and China's exchange rate policy and IMF exchange rate surveillance. The conference concluded with a wrap-up panel of experienced observers including Andrew Crockett (JPMorgan Chase), Fan Gang (People's Bank of China), Larry Summers (Harvard University), and C. Fred Bergsten as moderator.

The proceedings of the conference have been published in Debating China's Exchange Rate Policy (Peterson Institute for International Economics, 2008).

Conference Papers and Presentations

Welcoming Remarks	C. Fred Bergsten, Peterson Institute
Session I	China's Exchange Rate Policy: An Overview of Some Key Issues [pdf] Morris Goldstein, Peterson Institute Nicholas Lardy, Peterson Institute presentation [pdf]
	Discussants	Jonathan Anderson, UBS, Hong Kong
		Fan Gang, National Economic Research Institute and Monetary Policy Committee, People's Bank of China
Session II	Monetary Policy Independence, the Currency Regime, and the Capital Account in China [pdf] Eswar Prasad Cornell University
	Discussants	Shang-Jin Wei, Columbia University
		Jin Zhongxia, People's Bank of China
	Rebalancing China's Growth [pdf] Bert Hofman, World Bank Louis Kuijs, World Bank presentation [pdf]
	Discussants	Barry Bosworth, Brookings Institution
		Kenneth Rogoff, Harvard University
Session III	Estimates of the Equilibrium Exchange Rate of the Renminbi: Is There a Consensus and If Not, Why Not? [pdf] William R. Cline, Peterson Institute John Williamson, Peterson Institute presentation [pdf]
	Discussants	Jeffrey Frankel, Harvard University
		Simon Johnson, International Monetary Fund
	The Management of China's International Reserves: China and a Sovereign Wealth Fund Scorecard [pdf] A Scoreboard for Sovereign Wealth Funds [pdf] Edwin M.Truman, Peterson Institute presentation [pdf]
	Discussants	Mohamed El-Erian, Harvard Management Company
		Brad Setser, Council on Foreign Relations
Keynote Address	China's Exchange Rate Policy and Economic Restructing [pdf] Wu Xiaoling Deputy Governor, People's Bank of China
Session IV	The US Congress and the Chinese Renminbi [pdf] Gary Hufbauer and Claire Brunel, Peterson Institute presentation [pdf]
	Discussants	Stephen Roach, Morgan Stanley
		Julie Chon, Senate Banking Committee
	The Influence of the Renminbi on Exchange Rate Policy in Other Asian Currencies [pdf] Takatoshi Ito, University of Tokyo
	Discussants	Yung Chul Park, Seoul National University
		Jean Pisani-Ferry, Bruegel
Session V	IMF Surveillance over China's Exchange Rate Policy [pdf] Michael Mussa, Peterson Institute
	Discussants	Steven Dunaway, International Monetary Fund
		Timothy Adams, Lindsey Group
Wrap-up Panel	Commentary C. Fred Bergsten, Peterson Institute Andrew Crockett, JPMorgan Chase Fan Gang, National Economic Research Institute and Monetary Policy Committee, People's Bank of China Larry Summers, Harvard University