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Motivated by growing concerns about the risks and instability of China's financial system, this article reviews several … commonly perceived financial risks and discusses their roots in China's politico-economic institutions. We emphasize the need … to evaluate these risks within China's unique economic and financial systems, in which the state and non-state sectors …
Persistent link: https://www.econbiz.de/10012453483
Using a novel, high frequency dataset on capital control actions in 16 emerging market economies (EMEs) from 2001 to 2012, we provide new insights into the domestic and multilateral effects of capital controls. Increases in capital account openness reduce monetary policy autonomy and increase...
Persistent link: https://www.econbiz.de/10012457844
We study the interplay of optimal ex-ante (macroprudential) and ex-post (monetary or fiscal stimulus) measures to respond to systemic financial crises in a tractable model of fire sales. We find that it is generally optimal to use both, rejecting the Greenspan doctrine to only intervene ex post....
Persistent link: https://www.econbiz.de/10012459987
also highlighted their pathological problems. This paper studies the case of China for pitfalls of a state … within China is low. Furthermore, to the extent some capital moves around the country, the government (as opposed to the …
Persistent link: https://www.econbiz.de/10012467471
political rent seeking is substantial, firm value might rise as economy performance decays. China offers a suitable background …
Persistent link: https://www.econbiz.de/10012463999
This paper outlines a tractable cost-benefit analysis of the buffer stock financial services provided by international reserves and applies it to 8 of the largest Emerging Markets (BRICS, Indonesia, Mexico, Turkey) during 2000-2019. The efficient management of international reserves generates...
Persistent link: https://www.econbiz.de/10012479858
developing economies circa 1910: Brazil, Russia, India and China (BRIC). These four countries encompassed more than 50 percent of …
Persistent link: https://www.econbiz.de/10012460807
effects of the monetary policies of the US Federal Reserve, the European Central Bank and of the People's Bank of China on the …
Persistent link: https://www.econbiz.de/10012660005
We provide direct evidence of leverage-induced fire sales contributing to a market crash using account-level trading data for brokerage- and shadow-financed margin accounts during the Chinese stock market crash of 2015. Margin investors heavily sell their holdings when their account-level...
Persistent link: https://www.econbiz.de/10012480693
We ask how export demand shocks associated with the Asian financial crisis affected Chinese exporters. We construct firm-specific exchange rate shocks based on the pre-crisis destinations of firms' exports. Because the shocks were unanticipated and large, they are a plausible instrument for...
Persistent link: https://www.econbiz.de/10012464017