Download or read book Do Inflows or Outflows Dominate Global Implications of Capital Account Liberalization in China written by Mr.Tamim Bayoumi and published by International Monetary Fund. This book was released on 2013-08-28 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the implications of Chinese capital account liberalization for capital flows. Stylized facts from capital account liberalization in advanced and large emerging market economies illustrate that capital account liberalization has historically generated large gross capital in- and outflows, but the direction of net flows has depended on many factors. An econometric portfolio allocation model finds that capital controls significantly dampen cross-border portfolio asset holdings. The model also suggests that capital account liberalization in China may trigger net portfolio outflows as large domestic savings seek to diversify abroad.
Download or read book Putting the Cart Before the Horse Capital Account Liberalization and Exchange Rate Flexibility in China written by Mr.Eswar Prasad and published by International Monetary Fund. This book was released on 2005-01-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the issues involved in moving towards greater exchange rate flexibility and capital account liberalization in China. A more flexible exchange rate regime would allow China to operate a more independent monetary policy, providing a useful buffer against domestic and external shocks. At the same time, weaknesses in China’s financial system suggest that capital account liberalization poses significant risks and should be a lower priority in the short term. This paper concludes that greater exchange rate flexibility is in China’s own interest and that, along with a more stable and robust financial system, it should be regarded as a prerequisite for undertaking a substantial liberalization of the capital account.
Download or read book Capital Account Liberalization in China written by Pardee Center for the Study of the Longer-Range Future at Boston University and published by . This book was released on 2014-10-03 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the third report stemming from the Pardee Center Task Force on Regulating Capital Flows for Long-Run Development, a project of the Global Economic Governance Initiative (GEGI) at Boston University.This report is the collective work of experts examining the benefits and risks of accelerated capital account liberalization in China. The contributing authors - all leading scholars and practitioners from around the world - met at Boston University in February 2014 to discuss the experiences of other emerging market countries that liberalized the capital account in the past to glean lessons for China as it considers this delicate task. This volume is an outcome from that meeting, presenting the authors' perspectives on important aspects of capital account liberalization that China should pay special attention to, not only for its own sake, but also in consideration of the potential impacts that China's actions may have on other emerging markets and the global economy overall.The co-chairs for this Pardee Center Task Force Report are Kevin P. Gallagher, co-director of GEGI; José Antonia Ocampo of the Initiative for Policy Dialogue (IPD) at Columbia University; and Ming Zhang and Yu Yonding of the Institute for World Economics and Politics (IWEP) at the Chinese Academy of Social Sciences. GEGI, IPD, and IWEP are co-sponsors of this report, and IWEP will oversee publication of a Chinese translation. The Pardee Center for the Study of the Longer-Range Future and the Center for Finance, Law & Policy at Boston University also provided support for this project.The first two reports of the Pardee Center Task Force on Regulating Capital Flows for Long-Run Development are available at www.bu.edu/publications-library. All three reports and other publications of the Global Economic Governance Initiative are available at www.bu.edu/gegi.
Download or read book Capital Account Liberalization in China written by Lawrence J. Lau and published by . This book was released on 2015 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers the costs and benefits, if any, of short-term cross-border capital flows. It argues that short-term capital flows may be regulated with the introduction of a Tobin tax that applies to both inbound and outbound capital flows but not flows associated with current account transactions. It is shown that with such a Tobin tax, the “Impossible Trinity” becomes possible. Capital account convertibility for China and market determination of the exchange rate of the Renminbi may be accelerated if a Tobin tax is adopted and implemented.
Download or read book Capital Account Liberalization written by V. Subbulakshmi and published by . This book was released on 2004 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the Asian economic crisis, Asian countries saw the highs and lows of the costs and benefits of liberalization. When capital flows into a country it increases the invisible resources and catalyzes growth. But when a capital outflow takes place in une
Download or read book What to Expect when China Liberalizes Its Capital Account written by Mark Kruger and published by . This book was released on 2016 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: When China joined the World Trade Organization in December 2001, it marked a watershed for the world economy. Ten years from now, the opening of China's capital account and the financial integration that will unfold will be viewed as a milestone of similar importance. This paper discusses the benefits, to China and the rest of the world, of deepening China's capital account liberalization. We assess China's current level of de jure and de facto integration, in relation to other G20 economies. We update the Pasricha et al. (2015) data on capital control actions to 2015 for China, to assess China's international financial integration. We also look at its relative international investment position to gauge its de facto integration. We then estimate the size and composition of capital flows likely to ensue assuming that China's further capital account liberalization results in its gross international investment position converging to that of the G20 average. In addition, we discuss the risks involved with the further opening of China's capital account and how they can best be managed. We also emphasize the potentially stabilizing effects of residents' flows and the importance of liberalizing inflows and outflows in a balanced way and at the same time.
Download or read book Taming Capital Flows written by J. Stiglitz and published by Springer. This book was released on 2015-05-05 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume contains country experiences explained by policy makers and studies by leading experts on causes and consequences of capital flows as well as policies to control these flows. It addresses portfolio flow issues central to open economies, especially emerging markets.
Download or read book Preconditions for capital account liberalization in China written by and published by . This book was released on 2007 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Taming Capital Flows written by J. Stiglitz and published by Springer. This book was released on 2015-05-05 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume contains country experiences explained by policy makers and studies by leading experts on causes and consequences of capital flows as well as policies to control these flows. It addresses portfolio flow issues central to open economies, especially emerging markets.
Download or read book Enter the Dragon written by Domenico Lombardi and published by McGill-Queen's Press - MQUP. This book was released on 2016-10-17 with total page 442 pages. Available in PDF, EPUB and Kindle. Book excerpt: China has experienced a remarkable transformation since the 1990s. It now boasts the second-largest — some would argue the largest — economy in the world, having evolved from a closed economy into the leading goods-trading nation. China’s economic rise has given it increasing prominence in international monetary and financial governance, but it also exposes China to new risks associated with its integration into the global financial system. Drawing insights from economics and political science, Enter the Dragon: China in the International Financial System takes a broad conceptual approach and tackles the questions that accompany China’s ascendance in international finance: What are the motivations and consequences of China’s effort to internationalize the renminbi? What is the political logic underlying China’s foreign financial policy? What forces have shaped China’s preferences and capacities in global financial governance? Enter the Dragon contributes to the ongoing debate over China’s political interests, its agenda for economic and financial cooperation, and the domestic and international implications of its economic rise. Bringing together experts from both inside and outside of China, this volume argues that China’s rise in the international financial system is a highly complex and political process, and can only be understood by incorporating analysis of domestic and international political economy.
Download or read book Capital account liberalization for developing country written by and published by . This book was released on 2007 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book What to Expect when China Liberalizes Its Capital Account written by and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: When China joined the World Trade Organization in December 2001, it marked a watershed for the world economy. Ten years from now, the opening of China's capital account and the financial integration that will unfold will be viewed as a milestone of similar importance. This paper discusses the benefits, to China and the rest of the world, of deepening China's capital account liberalization. We assess China's current level of de jure and de facto integration, in relation to other G20 economies. We update the Pasricha et al. (2015) data on capital control actions to 2015 for China, to assess China's international financial integration. We also look at its relative international investment position to gauge its de facto integration. We then estimate the size and composition of capital flows likely to ensue assuming that China's further capital account liberalization results in its gross international investment position converging to that of the G20 average. In addition, we discuss the risks involved with the further opening of China's capital account and how they can best be managed. We also emphasize the potentially stabilizing effects of residents' flows and the importance of liberalizing inflows and outflows in a balanced way and at the same time.
Download or read book Who Needs to Open the Capital Account written by Olivier Jeanne and published by Peterson Institute. This book was released on 2012 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most countries emerged from the Second World War with capital accounts that were closed to the rest of the world. Since then, a process of capital account opening has occurred, with the result that all developed and many emerging-market countries now have capital accounts that are both de facto and de jure open, while many developing countries also have de facto openness. This study examines this in part by considering some of the first lessons from the current global financial crisis. This crisis may change the terms of the debate on capital account liberalization in a deeper and more lasting way than any of the crises of the past two decades because it may mark a reversal in the secular trend of financial liberalization at the core of the international financial system. The current crisis also raises new questions about the appropriate policy responses to boom-bust dynamics in domestic credit and in international credit flows. Intellectual consistency is needed between the domestic and international dimensions of financial regulation and the policies aimed at dealing with boom-bust dynamics in domestic and international credit.
Download or read book Capital Account Liberalization in China Prospects Prerequisites and Pitfalls written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Cato Institute, a public policy research foundation in Washington, D.C., presents an article entitled "Capital Account Liberalization in China: Prospects, Prerequisites, and Pitfalls," by Mark A. Groombridge. The article was published in the Spring/Summer 2001 issue of "The Cato Journal." The author discusses the argument that China should set a timetable in place to achieve capital account convertibility with clearly defined capital controls that are limited in scope and duration.
Download or read book Capital Account Liberalization written by Jeffrey Allen Chelsky and published by . This book was released on 2012 with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt: The initial post-World War II pursuit of capital account liberalization (CAL) by advanced economies was Europe-centric, with roots in a broader political--rather than economic--agenda of greater European integration. In continental Europe, CAL was addressed mostly through the adoption of multilateral instruments and codes. In contrast, CAL by the United States and United Kingdom was pursued unilaterally, motivated by their status as global reserve currency issuers and global financial centers. China's situation is fundamentally different. China today has no equivalent to the European political motivation for CAL or the domestically driven financial motivation of the United States or the United Kingdom. And while China may have long-term aspirations to be a global reserve currency issuer, the extent to which it internationalizes its currency is constrained by powerful domestic economic and political interests that continue to benefit from an export-led growth model underpinned by a pegged and undervalued exchange rate, both of which are difficult to maintain with an open capital account. Alongside China's overarching concern with the maintenance of financial and economic stability, these factors imply a different path for China than paths taken by advanced economies, with significant acceleration in the gradual pace of liberalization unlikely without accelerated development of domestic constituencies that traditionally support CAL.
Download or read book The Chinese Approach to Capital Inflows written by Mr.Eswar Prasad and published by International Monetary Fund. This book was released on 2005-04-01 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we adopt a cross-country perspective to examine the evolution of capital flows into China, both in terms of volumes and composition. China's inflows have generally been dominated by foreign direct investment (FDI), a pattern that appears to be favorable in light of the recent literature on the experiences of developing countries with financial globalization. We provide a detailed documentation of the evolution of China's capital controls, a proximate determinant of the pattern of capital inflows. We also discuss a number of other intriguing hypotheses that attempt to capture the "deeper" causes underlying China's approach to capital flows. In particular, we argue that some popular mercantilist-type arguments are inconsistent with the facts. We also analyze the recent rapid rise of China's international reserves and discuss its implications. Contrary to some popular perceptions, the dramatic surge in foreign exchange reserves since 2001 is mainly attributable to non-FDI capital inflows, rather than current account surpluses or FDI.
Download or read book Financial Market Reform In China written by Baizhu Chen and published by Routledge. This book was released on 2019-09-17 with total page 434 pages. Available in PDF, EPUB and Kindle. Book excerpt: As editors, first of all, we would like to thank the authors of this volume for their conscientious work that makes this volume possible. Many ideas in this book were first explored at an international symposium on financial market reforms in China, which was organized by the Chinese Economists Society. We would like to express our thanks to the sponsors of the conference: Center for International Business Education and Research, China Reform Foundation, MetLife, Hausman & Shrenger LLP, Lincoln National Insurance Company, City National Bank, Marshall School of Business, University of Southern California and The Chinese Economists Society. The Lincoln Foundation also provided generous support to this project through a grant made to Claremont Graduate University where this book was finalized.
