International financial adjustment is the process whereby valuation shifts from asset price and currency changes result in relatively durable net wealth transfers across countries＇ international balance sheets. Thisp...International financial adjustment is the process whereby valuation shifts from asset price and currency changes result in relatively durable net wealth transfers across countries＇ international balance sheets. Thispaper applies a financial valuation approach to estimate the direction and the broad extent of recent international financial adjustments on China international balance sheet. We estimate China＇s international balance sheet losses resulting from the valuation shifts over the period 2005 2010 and reveal that international currency shifts over the past decade have also generated a range of non-balance sheet financial and monetary adjustment pressures for China. This paper also evaluates how China＇s evolving international financial policy arrangements could better mitigate China＇s exposure to international financial adjustments. These arrangements include a more effective currency mechanism and the mechanisms to internationalize the RMB to buffer international financial valuation shocks展开更多
This article seeks to develop a conceptual and policy framework for understanding China＇s role in the global economic imbalances. China＇s contribution to these imbalances via recurrent trade and financial surpluses ...This article seeks to develop a conceptual and policy framework for understanding China＇s role in the global economic imbalances. China＇s contribution to these imbalances via recurrent trade and financial surpluses corresponds with a phase of deepening structural risks to China s economic growth and development. These structural challenges include： the composition of growth resulting from China＇s dynamic internal transformation, China＇s trade orientation, the trajectory of resource use and CO emissions, welfare problems relating to distribution and international constraints. This article develops a conceptual framework for examining the relationship between the processes of long-run structural transformation in China, its economic imbalances, and the role of institutional reform in dealing with these structural challenges. As such, economic policy shouM extend beyond short-term macro management to pursue an institutional reform dgenda to facilitate broader structural change to mitigate constraints to future growth and to improve economic welfare.展开更多
文摘International financial adjustment is the process whereby valuation shifts from asset price and currency changes result in relatively durable net wealth transfers across countries＇ international balance sheets. Thispaper applies a financial valuation approach to estimate the direction and the broad extent of recent international financial adjustments on China international balance sheet. We estimate China＇s international balance sheet losses resulting from the valuation shifts over the period 2005 2010 and reveal that international currency shifts over the past decade have also generated a range of non-balance sheet financial and monetary adjustment pressures for China. This paper also evaluates how China＇s evolving international financial policy arrangements could better mitigate China＇s exposure to international financial adjustments. These arrangements include a more effective currency mechanism and the mechanisms to internationalize the RMB to buffer international financial valuation shocks
文摘This article seeks to develop a conceptual and policy framework for understanding China＇s role in the global economic imbalances. China＇s contribution to these imbalances via recurrent trade and financial surpluses corresponds with a phase of deepening structural risks to China s economic growth and development. These structural challenges include： the composition of growth resulting from China＇s dynamic internal transformation, China＇s trade orientation, the trajectory of resource use and CO emissions, welfare problems relating to distribution and international constraints. This article develops a conceptual framework for examining the relationship between the processes of long-run structural transformation in China, its economic imbalances, and the role of institutional reform in dealing with these structural challenges. As such, economic policy shouM extend beyond short-term macro management to pursue an institutional reform dgenda to facilitate broader structural change to mitigate constraints to future growth and to improve economic welfare.
