Financial liberalization with macro-stability and fiscal revenue: Resolving economic dilemmas in China

Pak Hung Mo

Research output: Contribution to journalArticle

Abstract

Globalization has resulted in massive international flows of speculative capital. With its fragile social, economic and financial infrastructure, developing countries will be susceptible to the ills of the flows: periodic booms and busts with financial crises and loss of foreign reserves if they liberalize their financial market. In this
paper, we formulate a system that can resolve some important economic dilemmas in Chinese economy. Under the system, China can liberalize its financial sector without suffering from the potential ills and generate stable fiscal revenue from capital flows. This system is applicable to all developing countries that face similar
dilemmas as in the Chinese economy.
Original languageEnglish
Pages (from-to)1-23
Number of pages23
JournalKorea and the World Economy
Volume12
Issue number1
Publication statusPublished - Apr 2011

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