Macroeconomic Reform in China: Laying the Foundation for a Socialist Market Economy

This book contains papers produced from 1992 to 1994 on Chinese macroeconomic policy by the Department of Macroeconomic Regulation Studies (DMRS), under the direction of the System Restructuring Commission (SRC) of the People's Republic of China. The book reflects the issues and debates during this period. Also, it provides historical information, corrects some misunderstandings and constitutes a record of experiences for future studies on economic reform and policy initiatives. Part I of the book discusses the reform of the macroeconomic system, which involves changing the fiscal, financial, and investment systems. It also involves creating a basic institutional framework of macroeconomic regulations. Part II is about reform of fiscal and taxation systems to provide a solid base for fiscal revenues, create fair competition for economic participants, and establish an institutional framework for a unified national market. Part III deals with reform of the financial system--restructuring the central bank and developing a double-tier banking system. Part IV discusses changing the method of issuing and trading government bonds. Part V focuses on foreign exchange system reform, of which the long-term goal is a fully convertible local currency. Part VI deals with reform of planning, investments and management of state assets. Part VII analyzes macroeconomic conditions and macroregulations in 1993.