Why China needs a real central bank

ARTICLE - On paper, the People's Bank of China is in charge of monetary affairs - In reality, its authority is emasculated by party politics - a huge liability as WTO entry nears.

Originally published in the Far Eastern Economic Review.

WHEN YAN HAIWANG speaks, nobody listens. Nobody outside China, at least. Yet that is strange, because Yan is in charge of the country's monetary and banking policies on a day-to-day basis.

The news may come as a surprise to the world's bankers and economists who