Dynastic equilibrium: China modernises its monetary policy

Print section Print Rubric:  Citing an ancient emperor, China modernises its interest-rate system Print Headline:  Dynastic equilibrium Print Fly Title:  Chinese monetary policy UK Only Article:  standard article Issue:  How Trump has a feeble grasp of what it means to be president Fly Title:  Dynastic equilibrium QIN SHIHUANG was the emperor who first unified China, through bloody conquest more than two millennia ago. Known for starting the Great Wall and burying scholars alive, he has a new claim to fame: the central bank has drawn on his construction of a national road system to help explain its new monetary system. In a report on August 11th, the People’s Bank of China seized on an idiom derived from his road-building experience: it had “shaved off mountain peaks and filled valleys” in managing liquidity. The modernisation of monetary policy is in its own way a monumental project for China. Over the past two decades, the central ...