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China Financial Markets. I apologize for being offline for so long but the Viagra salesmen were able to hack my site once again and make it impossible for me to approve comments, add new posts, or otherwise manage the site.

China Financial Markets

Because my colleague working with me believes that there is malicious code imbedded in my blog that allows the hackers to get back in after we clean the site up, we are shifting to a new site (same address), which will probably mean that if you want to read old posts you will have to go to the old site. There will be a way to link directly. Sorry for the inconvenience. I am usually opposed to capital punishment but I am starting to think that there may be reasonable exceptions. Michael. Capitalism with Chinese Characteristics. Capitalism with Chinese Characteristics Cambridge University Press 9780521898102 - Capitalism with Chinese Characteristics - Entrepreneurship and the State - By Yasheng Huang Copyright Information Sloan School of Management, Massachusetts Institute of Technology.

Capitalism with Chinese Characteristics

Stephen Roach on the Next Asia: Opportunities and Challenges for a New Globalization. Acknowledgments.

Stephen Roach on the Next Asia: Opportunities and Challenges for a New Globalization

Introduction. A Subprime Outlook for the Global Economy. Save the Day. Coping with a Different Recession. Davos Diary: 2008. Double Bubble Trouble. Even When the Worst Is Over—Watch Out for Aftershocks. Pitfalls in a Postbubble World. Panic of 2008: Enough Scapegoating. Global Fix for a Global Crisis. Uprising: Will Emerging Markets Shape or Shake the World Economy? “A level-headed, reasonable and fascinating analysis, and a valuable and accessible tool for any investor trying to make sense of the world.”

Uprising: Will Emerging Markets Shape or Shake the World Economy?

—Gillian Tett, US Managing Editor, Financial Times “Anyone interested in the forces shaping the global economy, and our prosperity, should read Uprising.” —Robert Peston , BBC Business Editor “Balanced and instructive. Demystifying the Chinese Economy - Justin Yifu Lin. Exit from comment view mode.

Demystifying the Chinese Economy - Justin Yifu Lin

Click to hide this space WASHINGTON, DC – China had an advanced and prosperous civilization for millennia until the eighteenth century, but then degenerated into a very poor country for 150 years. What Is Financial Reform in China? Premier Wen’s recent attack on the Chinese banking system last month has highlighted what was already a very interesting debate on Chinese banks and the Chinese financial system.

What Is Financial Reform in China?

There is a growing sense that the Chinese banking system is deeply flawed and needs to be reformed. But why should China reform its banking – hasn’t the financial system been a key component of China’s economic success in the past three decades? Just as importantly, what does financial reform mean – what kind of changes would need to be implemented for a real reform to have occurred? Before addressing these questions we should be clear that there is no meaningful difference between China’s banking system and its financial system. Commercial banks dominate the country’s financial system and they largely determine pricing even in the informal banking system and in non-bank financial institutions.

The Future of the Yuan. According to a growing chorus of pundits and economists, China -- already the world’s most prolific exporter, largest sovereign creditor, and second-largest economy -- will someday soon provide the world’s reserve currency.

The Future of the Yuan

According to this view, just as the dollar dethroned the British pound in the interwar years, so the yuan will soon displace the dollar, striking a blow to U.S. interests. As the economist Arvind Subramanian recently wrote, the yuan “could become the premier reserve currency by the end of this decade, or early next decade.” This view has gained traction as Chinese leaders have launched a concerted effort to internationalize the yuan. During the G-20 summit in November 2008, at the height of the financial crisis, Chinese president Hu Jintao called for “a new international financial order that is fair, just, inclusive, and orderly.”

To continue reading, please log in. Don't have an account? Register Register now to get three articles each month. Have an account? Why Capital Flows Uphill - Keyu Jin. Exit from comment view mode.

Why Capital Flows Uphill - Keyu Jin

Click to hide this space LONDON – At first, it seems difficult to grasp: global capital is flowing from poor to rich countries. Emerging-market countries run current-account surpluses, while advanced economies have deficits. One would expect fast-growing, capital-scarce (and young) developing countries to be importing capital from the rest of world to finance consumption and investment. So, why are they sending capital to richer countries, instead?

China is a case in point. And China is not alone. Many observers believe that these global imbalances reflect developing economies’ financial integration, coupled with underdevelopment of domestic financial markets. From ‘Made in China’ to ‘Bought in China’ - Ideas. The Impoverished “Asian Century” - Chandran Nair. Exit from comment view mode.

The Impoverished “Asian Century” - Chandran Nair

Click to hide this space HONG KONG – By 2050, Asia will have more than five billion people, while the European Union’s share of the global population will decline from 9% to 5%. Annual economic growth in Asia over the past 30 years has averaged 5%. "China’s Growing Growth Risks" by Yao Yang. Exit from comment view mode.

"China’s Growing Growth Risks" by Yao Yang

Click to hide this space BEIJING – If everything goes right for China, it will surpass the United States as the world’s largest economy, in current dollar terms (and more quickly in real terms), by 2021. Its per capita income will reach that of today’s lower tier of high-income countries. But, despite its forward momentum, the Chinese economy faces looming risks in the coming decade. The immediate risk is continuing stagnation, or recession, in Europe. Over-tightening of domestic macroeconomic policies, especially those aimed at the real-estate market, could heighten the risk of a slowdown, with house prices currently falling across China, owing to stringent government measures.

Today, as China looks to the medium term, the government must face the problems created by its pervasive role in the economy. In addition to controlling 25-30% of GDP directly, the government also takes a lion’s share of financial resources. The Macroeconomics of Chinese kleptocracy. China is a kleptocracy of a scale never seen before in human history. This post aims to explain how this wave of theft is financed, what makes it sustainable and what will make it fail. There are several China experts I have chatted with – and many of the ideas are not original.

The synthesis however is mine. Some sources do not want to be quoted. Translating the Chinese Experience. Yikes! Xi Jinping arrives tomorrow. The Economist last month added a regular standing section on China to the front of the magazine, along with the US, the Americas, Asia, the Middle East and Africa, Europe and Britain. They’ve generally been on top of things since 1845, when they added railroads to the list of things they covered.