Thursday 10:00am - 11:40am     Middle Hall (中院) 305, Minhang campus




The following is  the updated grades for HWs and Quiz. Let me know if there is any error. As for the last multiple choice question, the answer is B because a purchase of the US treasury bonds from the Bank of England is a change in the holding of foreign reserves, not part of the capital account. Remember current account plus capital account equals the net change in the holding of foreign reserves. 



For the first analytic question in Assignment 5, the required reserve ratio is 10%, which is the default value unless otherwise specified through this course.


Some of you have encountered with a problem of downloading the lecture notes. This is due to the problem of website. To solve the problem, follow the steps below:

1. open the link of the lecture notes in a new window, it's url should looks like

2. Delete the first part of the url so that it becomes like

Thank Ms. Tao Jiamin for letting me know this problem.


In last Thursday's class, I briefly talked about the evolution of exchange rate of Renminbi (RMB). Here is a more detailed illustration:

Evolution of the RMB exchange rate:

1981- 1984: Duo exchange rates
I. Official exchange rate
II. Exchange rate for trade
II is normally higher than I (RMB is cheaper under II)

1985 - 1993: Duo exchange rates
I. Official exchange rate
II. Internal exchange market rate
II is similar as an inter-bank-rate.

1994 - 2005: De jure management float, De facto fixed exchange rate, pegged on Dollar.

2005 - : Management float, targeted on a basket of currencies including Dollar and Euro.



Answer key to Assignment 1 has been uploaded. I have also uploaded Assignment 2, which will be due on  March 24 (next Thursday) due to the upcoming Quiz on this Thursday.