China’s Monetary Policy and its Impact on Foreign Trade

Abstract

The aim of this thesis is to study China's monetary policy and its impact on China's import and export. The thesis is separated into 5 parts. Chapter 1 is the introduction; chapter 2 is the description of China's financial system and the central bank; chapter 3 is focused on the analysis of China's import and export from 2003 to 2012; chapter 4 is the analyses of the relationship between China's monetary policy (especially exchange rate) and China's import and export; chapter 5 is the conclusion. As a result of the analysis, a slight appreciation of Chinese Yuan in short term will not cut down China's export.