Inflation and Growth in China

The conference on inflation and growth in China brough together a number of academic luminaries, distinguished officials from many different countries, and IMF staff members to focus on the relationship between inflation and growth, a subject of perennial interest and debate. The IMF's Monetary and Exchange Affairs Department was invited to play an active role in organizing the conference because of its extensive proram of technical assistance to member countries, including China, to improve their ability to implement effective monetary policies and develop sound banking systems. In addition to monetary and exchange rate policies, the conference discussions covered other critical areas of economic management, including fiscal, agricultural, and environmental policies, all of which are ingredients of a policy mix that is effective in ensuring sustainable growth. Against the background of experiences from other countries, China's reform program was examined in detail, and the papers in this volume allow readers to draw inferences about the existence and sustainabilityof a trade-off between inflation and growth. The cross-fertilization that resulted from bringing together these different experiences enriched the conference discussions immeasurably.