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2020 | Buch

Keep Reforming: China’s Strategic Economic Transformation

verfasst von: Prof. Zhong Xu

Verlag: Springer Singapore

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Über dieses Buch

This book is about China’s economy transformation. Currently, China’s macro-leverage ratio has been effectively controlled, the central market interest rate (one year fixed interest rate) has gone down, and liquidity is now relatively abundant. However, financial institutions are generally reluctant to lend, the local governments are unwilling to act, and the fact that liquidity released by the central bank cannot be effectively transmitted to the real economy is leading to a contraction of credit and higher financing costs for private enterprises. Meanwhile, the downturn in the internal economic cycle has been exacerbated by the external shocks caused by frictions in Sino-US trade, and this set of circumstances has contributed to the polarization of expectations regarding China's real economic prospects and policy trends, as seen, for example, in the questions and discussions about policy trends relevant to the private economy. Indeed, one might claim that the current confusion of expectations even exceeds that of 2008, when the international financial crisis breaks out. From a dialectical perspective, the more pessimistic expectation of economic trend, the easier it is to build consensus on reform, and the more remarkable actual effects of reform, which must be based on a comprehensive understanding of the phased characteristics of China’s economic development.

In this book, based on the experience working in central bank of China, the author argues that China’s policy should focus on internal demand. In the coming period, China needs to persevere in the market orientation, step up reform and opening up, and create a favorable business environment. This book represents the following opinions: First, to reach a common understanding of the medium and high economic growth, and avoid the dream of high growth. Second, to stick to supply-side structural reform, accelerate economic transformation and structural adjustment, and further unleash the reform dividends and growth potential. The long-term and structural problems cannot be attributed to short-term and cyclical problems. Third, the challenges of external shocks could be also regarded as opportunities, which include but not limited to accelerate reform to improve property rights protection, state-owned capital management, corporate governance, income distribution, and social security. Fourth, whenever the trade friction happens, a multilateral framework is always helpful.

Inhaltsverzeichnis

Frontmatter
Chapter 1. China's Economic Transformation
Abstract
China’s economy has now reached a stage in which the macro leverage ratio is effectively controlled, the central market interest rate (one-year fixed interest rate) has gone down, and liquidity is relatively abundant. However, financial institutions are generally reluctant to lend, the local governments are unwilling to act, and the fact that liquidity released by the central bank cannot be effectively transmitted to the real economy is leading to a contraction of credit and higher financing costs for private enterprises. Meanwhile, the downturn in the internal economic cycle has been exacerbated by the external shocks caused by frictions in Sino-US trade, and this set of circumstances has contributed to the polarization of expectations regarding China's real economic prospects, as seen for example in the discussions about policy trends relevant to the private economy. Indeed, one might claim that the current confusion of expectations even exceeds that of 2008, when the international financial crisis broke out.
Zhong Xu
Chapter 2. Transformation of China’s National Governance Framework
Zhong Xu
Chapter 3. Transformation of China's Financial System
Abstract
A decade has passed since the US subprime mortgage crisis triggered the global financial crisis. Faced with the consequences of light-touch and fragmented regulation guided by laissez-faire ideology, central banks have played a crucial role in crisis response
Zhong Xu
Chapter 4. The Transformation of China’s Monetary Policy Framework
Abstract
In 1984, when the People’s Bank of China (PBC) began formally to perform the functions of a central bank, it operated under the condition of extremely complex economic constraints and structural characteristics. Since then, the monetary policy authorities of China have broken through the ideological shackles, engaged proactively in exploration, and formed the policy system and theoretical basis of China’s sound monetary policy according to China’s real economic situation and the needs of macro-regulation. The global financial crisis has brought new challenges to the traditional monetary economics and the monetary policy of the central bank, demanding profound reflection among theorists and policymakers.
Zhong Xu
Chapter 5. The Transformation of China’s Financial Regulation Framework
Abstract
Since the international financial crisis, financial regulation policies have been a constant focal point in every field and society. Based on in-depth reflection on the crisis, major developed economies have been proactive in promoting financial regulation reforms, improving financial regulation standards, enlarging the scope of financial regulation, and comprehensively enhancing the power of financial regulation.
Zhong Xu
Backmatter
Metadaten
Titel
Keep Reforming: China’s Strategic Economic Transformation
verfasst von
Prof. Zhong Xu
Copyright-Jahr
2020
Verlag
Springer Singapore
Electronic ISBN
978-981-15-8006-2
Print ISBN
978-981-15-8005-5
DOI
https://doi.org/10.1007/978-981-15-8006-2