Large uninsured risk, severe borrowing constraints, and rapid income growth can create excessively high household saving rates and large current account surpluses for emerging economies. Therefore, the massive foreign-reserve buildups by China are not necessarily the intended out- come of any...

The current global-imbalance literature (which explains why capital ows from poor to rich countries) cannot explain China s foreign asset positions because capital cannot ow out of China under capital controls. A related but deeper puzzle that this literature fails to address is China s high...

What were the economic benefits and costs of preventing a stock market meltdown during the summer of 2015 by the Chinese government intervention? We answer this question by estimating the value creation for the stocks purchased by the government between the period starting with the market crash...