Download or read book Financial Distortions in China written by Diego Anzoategui and published by International Monetary Fund. This book was released on 2015-12-24 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Widespread implicit guarantees and interest ceilings were major distortions in China’s financial system, contributing to a misallocation of resources. We analyze the impact of removing such frictions in a general equilibrium setting. The results show that comprehensive reforms generate better outcomes than partial ones: removing the deposit rate ceiling alone increases output, but the efficiency of capital allocation does not improve. Removing implicit guarantees improves output through lower cost of capital for private companies and better resource allocation.
Download or read book Financial Distortions in China written by Diego Anzoategui and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Widespread implicit guarantees and interest ceilings were major distortions in China'sfinancial system, contributing to a misallocation of resources. We analyze the impact ofremoving such frictions in a general equilibrium setting. The results show thatcomprehensive reforms generate better outcomes than partial ones: removing the depositrate ceiling alone increases output, but the efficiency of capital allocation does notimprove. Removing implicit guarantees improves output through lower cost of capital forprivate companies and better resource allocation.
Download or read book Could Financial Distortions Be No Impediment to Economic Gowth after All Evidence from China written by Alessandra Guariglia and published by . This book was released on 2006 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using data for 30 Chinese provinces over the period 1989-2003, this study examines the relationship between finance, and real GDP, capital, and total factor productivity growth. We find that traditionally used indicators of financial development and China-specific indicators measuring the level of state interventionism in finance are generally negatively associated with growth and its sources, while indicators measuring the degree of market driven financing in the economy are positively associated with them. These effects have been gradually declining over time, and are weaker for high FDI recipients, suggesting that FDI may be used to alleviate the costs associated with the inefficient banking sector.
Download or read book Debt and Distortion written by Paul Armstrong-Taylor and published by Springer. This book was released on 2016-08-12 with total page 271 pages. Available in PDF, EPUB and Kindle. Book excerpt: China’s unprecedented growth has transformed the lives of its people and impacted economies across the globe. The financial system supported this growth by providing cheap loans to boost investment and, in a virtuous cycle, rapid growth insured that these loans could be repaid. However, in recent years, this virtuous cycle has turned vicious. The financial system has continued to lend freely and cheaply as the economy has slowed, and the risk of crisis has mounted. In response, the government has initiated the most ambitious financial reforms in twenty years. Financial markets, businesses and governments are concerned about these risks and are struggling to understand what the reforms will mean for China and the rest of the world. Debt and Distortion: Risks and Reforms in the Chinese Financial System addresses the need for an up-to-date and accessible, yet comprehensive analysis of China’s financial system and related reforms. It will take a systematic look at China’s financial system: how it worked in the past and how it will work in the future; why reforms are needed; what risks they bring; and their impact on China and the rest of the world. By analyzing the topic in terms of a few fundamental distortions, this book makes an otherwise complex topic accessible while simultaneously providing new insights. These distortions provide a simple framework for understanding the nature of the Chinese financial system and its future prospects. Reform in China will transform the world’s second largest economy and impact everything from Peruvian copper mines to the London housing market. Business people, government officials, financiers and informed citizens would all benefit from understanding how changes in China’s financial system will shape the global economy in the coming decades.
Download or read book Are Financial Distortions an Impediment to Economic Growth written by Centre d'études prospectives et d'informations internationales (France) and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Financial Market Reform In China written by Baizhu Chen and published by Westview Press. This book was released on 2000 with total page 442 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book, the latest installment in Westview's Political Economy of Global Interdependence series, contributors address the single most pressing problem in the evolution of the Chinese economy: the reform of the nation's financial markets. The government's attempts to drag these markets into the world of modern finance has lagged considerably, effectively retarding the development of the economy as a whole. The need for solutions is made all the more urgent by the recent integration of Hong Kong into the nation's economy, the financial crises currently sweeping through Asia, and the spillover of the sluggish economy into civil society.
Download or read book People s Republic of China written by International Monetary Fund and published by International Monetary Fund. This book was released on 2011-11-14 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report discusses the IMF/World Bank Financial Sector Assessment Program (FSAP) exercise for China undertaken during June–December 2010. The assessment concluded that reforms in China have progressed well in moving toward a more commercially oriented financial system. Despite success and rapid growth, China’s financial sector is confronting several near-term risks, structural challenges, and policy-induced distortions. A properly composed and timely implemented set of reforms would help address these challenges. A framework to resolve weak financial institutions on a timely basis is also needed.
Download or read book Are Financial Distortions an Impediment to Economic Growth written by Centre d'études prospectives et d'informations internationales (France) and published by . This book was released on 2006 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Could Financial Distortions be No Impediment to Economic Growth After All written by Alessandra Guariglia and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Rebalancing China s Economy What Does Growth Theory Tell Us written by Jahangir Aziz and published by International Monetary Fund. This book was released on 2006-12 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses the standard one-sector neoclassical growth model to investigate why China's consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts that the price of capital may have been significantly distorted in the 1990s and 2000s. The distortion could have been caused by nonperforming loans, borrowing constraints, and uncertainty over changes in government guidance in bank lending. If China is to rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms and financial market development could, therefore, turn out to be key.
Download or read book China s Financial System and Economy written by Zhiguo He and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: China's financial system has been integral to its spectacular economic growth over the past 40 years. We review the recent literature on China's financial system and its connections to the Chinese economy based on the categories of Aggregate Financing to the Real Economy (AFRE), a broad measure of the nation's yearly flow of liquidity accounting for unique features of China's financial system. While early work on China's financial system emphasizes the state-owned enterprise (SOE) reform, the recent literature explores other more market-based financing channels--including shadow banking--that grew rapidly after 2010 and have become important components of AFRE. These new financing channels are not only intertwined with each other, but more importantly often ultimately tied back to the dominant banking sector in China. Understanding the mechanisms behind these channels and their intrinsic connections is crucial to alleviate capital allocation distortion and mitigate potential systemic financial risk in China.
Download or read book China s Financial System and Economy written by Zhiguo He and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: China's financial system has been integral to its spectacular economic growth over the past 40 years. We review the recent literature on China's financial system and its connections to the Chinese economy based on the categories of Aggregate Financing to the Real Economy (AFRE), a broad measure of the nation's yearly flow of liquidity accounting for unique features of China's financial system. While early work on China's financial system emphasizes the state-owned enterprise (SOE) reform, the recent literature explores other more market-based financing channels--including shadow banking--that grew rapidly after 2010 and have become important components of AFRE. These new financing channels are not only intertwined with each other, but more importantly often ultimately tied back to the dominant banking sector in China. Understanding the mechanisms behind these channels and their intrinsic connections is crucial to alleviate capital allocation distortion and mitigate potential systemic financial risk in China.
Download or read book China s Guaranteed Bubble written by Ning Zhu and published by McGraw Hill Professional. This book was released on 2016-03-11 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: The truth about China’s financial industry—and the growing bubble that’s guaranteed to blow it apart... In recent years, the Chinese economy has been fueled by the implicit guarantee of major banks and local governments by the nation’s central government. The resultant bubble has led to the emergence of a large shadow banking industry that poses major risks to China’s real estate market, speculative stock investments, state-owned enterprises, and more. It’s not a matter of if China’s bubble will burst. It’s a matter of when. This eye-opening book from renowned financial scholar Ning Zhu provides a provocative in-depth analysis of China’s current economic practices—and the profound dangers they pose—as well as a powerful wake-up call to investors, regulators, and the entire financial industry. Zhu’s book is packed with startling revelations, including: * The enormous impact of China’s implicit guarantees on economic growth—and what will happen when those guarantees are gone * The ever-increasing size of China’s shadow banking industry—and how it’s just the tip of the iceberg * The once-reliable strength of China’s real estate and stock markets—and how they’re threatened by government distortion * The latest financial innovations and channels—and how they are circumventing regulations and triggering unprecedented risks Filled with fascinating case studies, worst case scenarios, and a well-argued case for much-needed reforms, Zhu’s enlightening book is a must-read for anyone with interests or investments in China’s rapidly changing economy. You’ll find intriguing new perspectives on traditional growth models, innovative solutions for overcapacity problems, and revealing new stats on so-called Voodoo Statistics. You’ll get a glimpse behind the curtain of the “unknown unknowns” of China’s implicit guarantees—and learn just how misleading these government policies can be. Most importantly, Zhu’s book provides solid recommendations for diffusing the time bomb these guarantees can and will set off. Brilliant, incisive, and ultimately optimistic, China’s Guaranteed Bubble will incite a much-needed call for change and set us on a new path of prosperity and growth—for China, the economy, and the world.
Download or read book US China External Imbalance and the Global Financial Crisis written by Justin Yifu Lin and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Financial Market Reform written by Yu-Fu Chen and published by . This book was released on 2015 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Avoiding the Fall written by Michael Pettis and published by Brookings Institution Press. This book was released on 2013-09-24 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: The days of rapid economic growth in China are over. Mounting debt and rising internal distortions mean that rebalancing is inevitable. Beijing has no choice but to take significant steps to restructure its economy. The only question is how to proceed. Michael Pettis debunks the lingering bullish expectations for China's economic rise and details Beijing's options. The urgent task of shifting toward greater domestic consumption will come with political costs, but Beijing must increase household income and reduce its reliance on investment to avoid a fall.
Download or read book The Internationalization of the RMB Capital Market Openness and Financial Reforms in China written by Joshua Aizenman and published by . This book was released on 2015 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides an overview of Chinese financial and trade integration in recent decades, and the challenges facing China in the coming years. China had been a prime example of exported growth, benefiting from learning by doing, and by adopting foreign know-how, supported by a complex industrial policy. While the resultant growth has been spectacular, it comes with hidden but growing costs and distortions. The Chinese export-led growth path has been challenged by its own success, and the Global Financial Crisis forced China toward rebalancing, which is a work in progress. Reflecting on the internationalization of the CNY, one expects the rapid accelerating of the commercial internationalization of the CNY.
