constitute long-term appreciation expectations on yuan and yen, which have made China and Japan vulnerable to U.S. interest rate … cuts and appreciation expectation shocks. For both China and Japan - at different points of time - self-fulfilling runs …, speculative bubbles and post-bubble secular stagnation. To prevent a similar scenario for China capital controls, a tighter …

carries risks. International experience suggests that China's credit growth is on a dangerous trajectory, with increasing … risks of a disruptive adjustment and/or a marked growth slowdown. Several China-specific factors-high savings, current …