By Xia Bin, Gao Shanwen, Chen Daofu　

Date: 2003/08/06

-- Reasons for and impacts of credit fluctuations since latter half of 1990s

Abstract：　

The basic trend for China's speedy economic growth in the next few years will remain unchanged. The present credit increase will not cause a prompt inflation witnessed in the mid-1980s and the beginning of 1990s, but it is necessary to adopt some pre-regulation and micro-regulation countermeasures. The central bank should continue to implement the stable exchange rate policy; keep a close watch on credit increase and make sure that its growth rate will not exceed 23%; be prudent in implementing the deposited reserve policy and continue to use the central bank bills for hedging operations; to improve the cultivation mechanism for China's exchange rate market with unchanged nominal exchanged rate of RMB.