This paper investigates the effectiveness monetary policy by Granger causality tests in the two regimes of inflation and deflation, respectively. The surplus lag rolling estimation is applied to deal with the problem of the frequent structural changes in the Chinese monetary system. We found that the monetary policies have become less effective in stabilizing the price level in the deflation era that started from 1998. There is also empirical evidence to suggest that money was endogenous in China during the inflation period. This implies that the People's Bank of China had difficulty exercising the power of money supply to reduce inflation if the endogeneity was the result of the market behaviour. However, if the endogeneity was due to the government inflation-targeting rule, then there is no evidence to suggest that this rule has been effective for M0, M1 and M2 instruments, except for the M0 instrument during the inflation period of April 1990 to March 1995. Although it was found that money ceased to be endogenous in the deflation periods, it does not support the proposal of utilizing the money supply as a policy instrument, as we found that money is impotent in influencing price in the deflation regime. Our findings provide some empirical evidence to support the Chinese government adopting alternative policy instruments such as an active fiscal policy in the era of deflation.Money, price, Granger causality, China, JEL classifications: E52, E31, C32,

This paper uses monthly data to examine the autonomy and effectiveness of monetary policy in China under the de facto fixed exchange rate arrangement in place from 1998 to 2005. The results obtained from Granger causality tests in a vector autoregression framework indicate that: (i) China actually conducted independent monetary policy during the fixed exchange rate period; and (ii) market-oriented policy measures are impotent in influencing real output and prices. The framework of the investigation into the autonomy of monetary policy adapts to the Chinese economic condition that primary loan and deposit rates are set by the central bank. Based on the empirical results, the present paper provides alternative strategies to improve the effectiveness of monetary policy in China, including developing the financial system and solidifying microeconomic fundamentals instead of forcing the adaptation of a more flexible exchange rate regime. Copyright (c) 2009 The Author Journal compilation (c) 2009 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

This paper focuses on measuring the trade imbalance between China and the United States (US) within the framework of the ownership-based approach. It extends the baseline model developed, respectively, by NAS, Julius, and BEA into a three-country framework, consisting of the domestic economy, the foreign economy, and the rest of the world. The results of the study show that the non-US foreign direct investment in China is mostly responsible for China's trade surplus with the US. As a result, China's ownership-based trade surplus is surprisingly small relative to the conventional measure. Copyright � 2010 Blackwell Publishing Ltd.

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A one-year mathematics project that focused on measurement was conducted with six Torres Strait Islander schools and communities. Its key focus was to contextualise the teaching and learning of measurement within the students' culture, communities and home languages. Six teachers and two teacher aides participated in the project. This paper reports on the findings from the teachers' and teacher aides' survey questionnaire used in the first Professional Development session to identify: a) teachers' experience of teaching in the Torres Strait Islands, b) teachers' beliefs about effective ways to teach Torres Strait Islander students, and c) contexualising measurement within Torres Strait Islander culture, communities and home languages. A wide range of differing levels of knowledge and understanding about how to contextualise measurement to support student learning were identified and analysed. For example, an Indigenous teacher claimed that mathematics and the environment are relational, that is, they are not discrete and in isolation from one another, rather they interconnect with mathematical ideas emerging from the environment of the Torres Strait communities.