China's financial openness, as measured by cross border flows and asset ownership, peaked during its 2000s growth surge, as did downward pressure on global interest rates and price levels. This was despite China's restriction of financial inflows to approved FDI and tight controls on private...

China’s financial openness, measured by cross border flows and asset ownership, peaked during its growth surge. We analyze its international effects and the roles of capital controls that restricted financial inflows to approved FDI limited private outflows. We use a global macro model with...