The vertical Phillips curve and the time-inconsistency problem make it necessary for the central bank to employ nominal anchors to solve the issues just specified.The discussion unfolded in this paper touches upon three nominal anchors: exchange rate anchor, monetary targeting, and inflation targeting.Any one of the three has its own advantages and disadvantages. Any shock taking place in an anchor country can affect its economy.This implies that exchange rate pegging is unlikely to be a viable option for China.On the other hand, monetary targeting is not even an alternative for China because of the breakdown of the relationship between monetary aggregates and inflation.Thus, a makeshift way is to switch to an inflation targeting regime with its transparency and accountability.