Finland paper sizes up Chinese reforms

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A discussion paper published by the Bank of Finland on December 11 considers Chinese financial reforms and their relationship with monetary policy.

The authors, Michael Funke and Michael Paetz, use dynamic stochastic general equilibrium models to analyse the "flurry of reform initiatives" pursued in China in an effort to create a more liberalised financial market. China will face "significant challenges regarding the conduct of monetary policy" as they are implemented, the paper says.

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