China's unbalanced finance

Author: Yi Qiulin
Publisher:
Publish Date: 2004-10-01
Features: The author extends existing research on China's unbalanced economic issues to the field of finance, establishing a new category called "compound unbalance" and drawing a series of important conclusions, including: there are speculative components in China's savings growth; when credit for the domestic commodity production sector is constrained in amount, raising interest rates may either decrease or increase the growth rate of the economy; during deflation, lowering interest rates can increase the output of the export commodity production sector but not that of the domestic commodity production sector; foreign exchange reserve growth does not necessarily lead to inflation, but may instead cause deflation; before the transformation of the governance structure of financial institutions, interest rate liberalization and abandoning credit scale control will increase the risk of financial institutions (non-performing loans), and so on.