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The Internationalization of the RMB, Capital Market Openness, and Financial Reforms in China

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  • Joshua Aizenman

Abstract

This paper provides an overview of Chinese financial and trade integration in recent decades, and the challenges facing China in the coming years. China had been a prime example of exported 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 Chinese export-led growth path has been challenged by its own success, and the Global Financial Crisis forced China toward rebalancing, which is a work in progress. Reflecting on the internationalization of the CNY, one expects the rapid accelerating of the commercial internationalization of the CNY.

Suggested Citation

  • Joshua Aizenman, 2015. "The Internationalization of the RMB, Capital Market Openness, and Financial Reforms in China," NBER Working Papers 20943, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:20943
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    Cited by:

    1. Takatoshi Ito, 2016. "A New Financial Order in Asia: Will a RMB bloc emerge?," NBER Working Papers 22755, National Bureau of Economic Research, Inc.
    2. repec:bla:worlde:v:39:y:2016:i:12:p:1934-1946 is not listed on IDEAS
    3. Anne Epaulard & Aude Pommeret, 2016. "Financial Integration, Growth and Volatility," Pacific Economic Review, Wiley Blackwell, vol. 21(3), pages 330-357, August.
    4. repec:eee:jimfin:v:74:y:2017:i:c:p:232-257 is not listed on IDEAS
    5. Carlos P. Barros & Luis A. Gil-Alana & Zhongfei Chen, 2016. "Exchange rate persistence of the Chinese yuan against the US dollar in the NDF market," Empirical Economics, Springer, vol. 51(4), pages 1399-1414, December.

    More about this item

    JEL classification:

    • F3 - International Economics - - International Finance
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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