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Bringing down the Great Wall? Global implications of capital account liberalisation in China

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  • John Hooley

    (Bank of England)

Abstract

A few towns and cities in the United Kingdom have set up local currency schemes to promote local sustainability. The schemes issue paper instruments with some similar design features to banknotes. This article explains how these instruments differ from banknotes. The size, structure and backing arrangements of existing schemes mean that local currencies are unlikely to pose a risk to the Bank’s monetary and financial stability objectives. Nonetheless, consumers should be aware that local currency instruments do not benefit from the same level of consumer protection as banknotes.

Suggested Citation

  • John Hooley, 2013. "Bringing down the Great Wall? Global implications of capital account liberalisation in China," Bank of England Quarterly Bulletin, Bank of England, vol. 53(4), pages 304-315.
    • Handle: RePEc:boe:qbullt:0118
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    File URL: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2013/bringing-down-the-great-wall-global-implications-of-capital-account-liberalisation-in-china.pdf?la=en&hash=A96640CED7CEDB0DD5E3A128060CCF86A0B691AB
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    References listed on IDEAS

    as
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    Cited by:

    1. Nicholas Borst & Nicholas Lardy, 2015. "Maintaining Financial Stability in the People's Republic of China during Financial Liberalization," Working Paper Series WP15-4, Peterson Institute for International Economics.
    2. Eden Hatzvi & Jessica Meredith & William Nixon, 2015. "Chinese Capital Flows and Capital Account Liberalisation," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 39-48, December.
    3. Dieppe, Alistair & Gilhooly, Robert & Han, Jenny & Korhonen, Iikka & Lodge, David, 2018. "The transition of China to sustainable growth – implications for the global economy and the euro area," Occasional Paper Series 206, European Central Bank.
    4. Mark Kruger & Gurnain Pasricha, 2016. "What to Expect When China Liberalizes Its Capital Account," Discussion Papers 16-10, Bank of Canada.
    5. Isha Agarwal & Grace Weishi Gu & Eswar Prasad, 0. "The Determinants of China’s International Portfolio Equity Allocations," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 0, pages 1-50.
    6. Isha Agarwal & Grace Weishi Gu & Eswar Prasad, 2020. "The Determinants of China’s International Portfolio Equity Allocations," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(3), pages 643-692, September.
    7. Rose Cunningham & Eden Hatzvi & Kun Mo, 2018. "The Size and Destination of China's Portfolio Outflows," Discussion Papers 18-11, Bank of Canada.
    8. Guonan Ma & Robert N. McCauley, 2014. "Financial openness of China and India- Implications for capital account liberalisation," Bruegel Working Papers 827, Bruegel.
    9. International Monetary Fund, 2014. "United Kingdom: Selected Issues," IMF Staff Country Reports 2014/234, International Monetary Fund.

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