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Financial Reform in Australia and China

Author

Listed:
  • Alexander Ballantyne

    (Reserve Bank of Australia)

  • Jonathan Hambur

    (Reserve Bank of Australia)

  • Ivan Roberts

    (Reserve Bank of Australia)

  • Michelle Wright

    (Reserve Bank of Australia)

Abstract

This paper describes the Australian experience of domestic financial deregulation, capital account liberalisation and the float of the exchange rate, and provides a comparison to China's current efforts to reform its own financial system. In doing so, it considers similarities and differences in the circumstances facing the two economies. Australia's financial reforms were essential, in the longer term, for building a stronger economy and more robust financial system, but the paper does not interpret the Australian experience as a prescription for financial reform in China. Indeed, the specific sequencing of deregulation that occurred in Australia might not be optimal in a Chinese context, although it is likely that the reforms themselves, pursued with appropriate caution, would have long-run benefits for the Chinese economy.

Suggested Citation

  • Alexander Ballantyne & Jonathan Hambur & Ivan Roberts & Michelle Wright, 2014. "Financial Reform in Australia and China," RBA Research Discussion Papers rdp2014-10, Reserve Bank of Australia.
  • Handle: RePEc:rba:rbardp:rdp2014-10
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    File URL: https://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-10.pdf
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    References listed on IDEAS

    as
    1. Mishkin,Frederic S., 2001. "Financial policies and the prevention of financial crises in emerging market economies," Policy Research Working Paper Series 2683, The World Bank.
    2. Bonin, John P. & Huang, Yiping, 2001. "Dealing with the bad loans of the Chinese banks," Journal of Asian Economics, Elsevier, vol. 12(2), pages 197-214.
    3. repec:bla:ozechr:v:57:y:2017:i:3:p:291-315 is not listed on IDEAS
    4. Tim Robinson & Tim Atkin & Mark Caputo & Hao Wang, 2017. "Macroeconomic Consequences of Terms of Trade Episodes, Past and Present," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 57(3), pages 291-315, November.
    5. Craig Beaumont & Li Cui, 2007. "Conquering Fear of Floating; Australia's Successful Adaptation to a Flexible Exchange Rate," IMF Policy Discussion Papers 07/2, International Monetary Fund.
    6. Chris Becker & Daniel Fabbro, 2006. "Limiting Foreign Exchange Exposure through Hedging: The Australian Experience," RBA Research Discussion Papers rdp2006-09, Reserve Bank of Australia.
    7. Frederic S. Mishkin, 2001. "Financial Policies and the Prevention of Financial Crises in Emerging Market Countries," NBER Working Papers 8087, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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.
    2. Eden Hatzvi & William Nixon & Michelle Wright, 2014. "The Offshore Renminbi Market and Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 53-62, December.
    3. repec:pal:compes:v:61:y:2019:i:3:d:10.1057_s41294-019-00096-x is not listed on IDEAS
    4. Rose Cunningham & Eden Hatzvi & Kun Mo, 2018. "The Size and Destination of China's Portfolio Outflows," Discussion Papers 18-11, Bank of Canada.
    5. Guonan Ma & Jinzhao Chen, 2019. "The Role of Internally Financed Capex in Rising Chinese Corporate Debts," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(3), pages 413-442, September.
    6. repec:rba:rbabul:dec2017-09 is not listed on IDEAS

    More about this item

    Keywords

    financial deregulation; financial development; China; Australia;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania

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