世界经济概论（英文版）chapter 12 International Monetary Dimensions

chapter12InternationalMonetaryDimensionsInthischapter,we’llcover:ReformingChina’sBankingandFinancialSectorsChina’sCapitalAccountConvertibilityProspectsofRMBtoBecomeaGlobalCurrencyReformingChina’sBankingandFinancialSectors1.ChangesintheBankingSystemTopromotecompetitioninthebankingsystemandtomeetthefundingneedsofdifferentsectorsandareas,otherbanks,non-bankfinancialintermediariesandcooperativesbegantoemerge.ReformingChina’sBankingandFinancialSectorsBytheendof2021,therehadbeen5,600bankingfinancialinstitutions,including:3policybanks,theBigFour,BankofCommunications13joint-stockcommercialbanks136CityCommercialBanks4,965RuralCreditCooperativesandotherinstitutions.ReformingChina’sBankingandFinancialSectors2.MonetaryPolicyandFinancialSupervisionObjectivesandInstrumentsofMonetaryPolicyRegulatoryFrameworkforBanksandFinancialMarketsReformingChina’sBankingandFinancialSectorsChina’sbankingsectorstillhasalongwaytogo.Coordinationproblemsarose.Howtosolvetheboundaryprobleminregulation?Howtomakesupervisorspositivelyandpromptlyrespondtofinancialrisksorcrisis?Howtobalancebetweenfinancialinnovationsorefficiencyandfinancialstability?ReformingChina’sBankingandFinancialSectors3.Reformofthe‘BigFour’GiventhedifficultiesinreformingtheBigFour,theauthoritiesthenturnedtheirattentiontogrowingnewfinancialinstitutionsbysettingupanumberofjoint-stockbanks.ReformingChina’sBankingandFinancialSectorsInthewakeoftheAsianfinancialcrisisin1997,thestumblingreformoftheBigFourbecamemorecompelling.China’saccessiontotheWTOcalledformorefundamentalreformsofitsbankingsector.China’sCapitalAccountConvertibilityThefirstpreconditionforcapitalaccountconvertibilityisastrongdomesticbankingsystem.Asecondprerequisitefortheliberalizationofthecapitalaccountisawell-developedcapitalmarket.China’sCapitalAccountConvertibilityAthirdpreconditionforasuccessfultransitiontocapitalaccountconvertibilityisanexchangeratethatisreasonablyclosetoitsunderlyingequilibriumlevel.ProspectsofRMBtoBecomeaGlobalCurrency1.RenminbiblocintheUSBackyardEastAsiaisnowarenminbiblocbecausethecurrenciesofsevenoutofteneconomiesintheregiontracktherenminbimorecloselythantheUSdollar.ProspectsofRMBtoBecomeaGlobalCurrencyTwoImplications:1.itisonemoreimportantmarkerintheshiftofeconomicdominanceawayfromtheUnitedStatesandtowardsChina.2.thisshifthighlightstheconflictingtugsthatEastAsiancountrieswillface.ProspectsofRMBtoBecomeaGlobalCurrency2.PreludetoRMBinternationalizationAnumberoffactorssuggestthatChinawantstomakeRMBinternationalizationhappenby2021.1.theInternationalMonetaryFundisreviewingitsspecialdrawingrightsbasketProspectsofRMBtoBecomeaGlobalCurrency2.theShanghaiMunicipalGovernmenthassetagoalofmakingthecitytheglobalpricingcentreforbothonshoreandoffshoreRMBfinancialproductsby2021andaglobalfinancialcentreby2021.3.thereisChina’sworkalongsidetheUKGovernmentpromotingLondonasaCNYcentre,operatinginpartnershipwithHongKong.ProspectsofRMBtoBecomeaGlobalCurrency4.traditionally,CNH—theoffshoreversion—hastradedatadifferentFXratetoCNYduetoheavyregulationinmainlandChina.Butthatregulationhasnoweasedandtherateshaveconverged.ProspectsofRMBtoBecomeaGlobalCurrencyMeetingthegovernment’sapparentdeadlineforRMBinternationalizationisnotgoingtobeeasy.ButpromotingRMBasaglobalreservecurrency,withalltheeconomicbenefitsthatwillbringinadditiontoexertingmorepoliticalinfluenceontheglobalstage,clearlyremainshighontheauthorities’agenda.StudyQuestionsStudyQuestions1. HowhasChina’sfinancialsystemchangedasaresultofreformsduringthepastthreedecades?2. ExplainChina’sgradualismapproachusedinreformingthequotasystemforitsmonetarypoliciesandcurrencyissuanc.3. WhydidtheChinesegovernmentestablishthepolicybanksinthe1990s?StudyQuestions4. WhatarethecurrenttrendsofChinafinancialli