Monetary Policy Proving Effective

Hu Xiaolian,Vice Governor of the People's Bank of China,the country's central bank, published an article concerning China's managed floating exchange rate regime and the effectiveness of the monetary policy on the bank's website on July 26.She pointed out monetary policy,as an important instrument of China's macroeconomic control,has faced many challenges in recent years.A more flexible exchange rate regime will help improve the effectiveness of the policy.Edited excerpts follow