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China's economy has grown rapidly in a setting where inflation has emerged as a major problem. The Chinese authorities, as part of a comprehensive reform programme, have paid particular attention to this problem. They have recently undertaken wide-ranging revisions of the statutes and laws regulating the operations and responsibilities of the People's Bank of China, to ensure that price stablilty is the primary responsibility of monetary policy. These conference proceedings benefitted from the input of senior central bank officials, academics and IMF staff.