IDEAS home Printed from https://ideas.repec.org/p/hkm/wpaper/032012.html
   My bibliography  Save this paper

China's LGFV Crisis 2011: The Conflict between Local Autonomy, National Interest and Financial Reforms

Author

Listed:
  • Leo F. Goodstadt

    (Hong Kong Institute for Monetary Research and Trinity College, University of Dublin and The University of Hong Kong)

Abstract

2011 saw China overtaken by alarming financial fallout from the 2008 economic stimulus package to counter the global financial crisis. This paper shows how the decision to rely on local governments to fund the bulk of the package imposed serious strains on the banking system and reversed a decade of reform initiatives. The analysis indicates that this costly outcome was predictable and caused by a long-standing failure to deal with the extraordinary fiscal and financial autonomy exercised by local officials at the expense of sound banking and stable property markets.

Suggested Citation

  • Leo F. Goodstadt, 2012. "China's LGFV Crisis 2011: The Conflict between Local Autonomy, National Interest and Financial Reforms," Working Papers 032012, Hong Kong Institute for Monetary Research.
    • Handle: RePEc:hkm:wpaper:032012
    as

    Download full text from publisher

    File URL: http://www.hkimr.org/uploads/publication/23/ub_full_0_2_310_wp-no-03_2012-final-.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hkm:wpaper:032012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: HKIMR (email available below). General contact details of provider: https://edirc.repec.org/data/hkimrhk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.