Even though China does control international capital mobility, it still needs to undertake the increasingly difficult task of sterilization. Explain why China, in its efforts at controlling its exchange rate, has in effect lost a degree of control over its monetary policy. Discuss both the magnitude and volatility of exports as factors.

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The Answer of Even though China does control international capital mobility, it still needs to undertake the increasingly difficult task of sterilization. Explain why China, in its efforts at controlling its exchange rate, has in effect lost a degree of control over its monetary policy. Discuss both the magnitude and volatility of exports as factors.

Even Though China Does Control International Capital Mobility, It Still