This working paper by the Bank for International Settlements finds that China's capital controls have allowed the authorities to retain some degree of short-term monetary autonomy, despite the fixed exchange rate.

The authors, Guonan Ma and Robert N. McCauley, argue: "Although the Chinese capital controls have not been watertight, we find sustained and significant gaps between onshore and offshore renminbi interest rates and persistent dollar/renminbi interest rate differentials during the