McKinnon, Ronald; Schnabl, Gunther - In: China & World Economy 17 (2009) 1, pp. 1-32
China's financial conundrum arises from two sources. First, its large saving (trade) surplus results in a currency mismatch because it is an immature creditor that cannot lend in its own currency. Instead, foreign currency claims (largely US dollars) build up within domestic financial...