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Internationalization of the RMB , Capital Market Openness and Financial Reforms in C hina
Author(s) -
Aizenman Joshua
Publication year - 2015
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12116
Subject(s) - internationalization , openness to experience , economics , renminbi , capital (architecture) , international economics , international trade , finance , monetary economics , exchange rate , psychology , social psychology , archaeology , history
This paper provides an overview of C hinese financial and trade integration in recent decades, and the challenges facing C hina in the coming years. C hina had been a prime example of export‐led growth, benefiting from learning by doing, and by adopting foreign know‐how, supported by a complex industrial policy. While the resultant growth has been spectacular, it comes with hidden but growing costs and distortions. The C hinese export‐led growth path has been challenged by its own success, and the global financial crisis forced C hina toward rebalancing, which is a work in progress. Reflecting on the internationalization of the CNY , rapid acceleration of the commercial internationalization of the CNY is expected. In contrast, there are no clear‐cut reasons to rush with the full CNY financial internationalization: the gains from CNY financial internationalization are overrated.