Currency regulation and financial reform

Author: Xie Ping
Publisher:
Publish Date: 2005-03-01
Features: It is often said that this is a period of reform, and market development is the priority, with rules to be established gradually. The so-called "get on the bus first, buy a ticket later" is not actually the case. Reform involves replacing old rules with new ones. The development of the financial market must be regulated by rules, otherwise it will become a gambling house full of widespread defaults and frauds. A market without rules will lead to a significant increase in transaction costs, making transactions unsustainable. These are all basic principles of economics. China's financial reform has achieved great success but also paid a heavy price. Currently, the financial risks accumulated in China over the years are gradually being exposed, a consequence of weak rule enforcement. Looking back today, we cannot help but admit that rules are better than development.