Capital Flows and China's Economic Growth

Author: Zhao Zhijun
Publisher:
Publish Date: 2002-05-01
Features: Complete capital mobility, akin to the state of an object at rest or in uniform linear motion without external forces, is a prerequisite for perfect competition and a necessary component for optimizing resource allocation and promoting economic growth. However, frictionless capital mobility does not exist. Complete capital mobility can only be approached infinitely but can never be fully realized. To facilitate rational capital flow, money, stocks, bonds, insurance, and their derivatives have been continuously created, forming the core of the modern economy. This book comprehensively examines the relationship between the total volume, structure, interest rates, exchange rates of financial assets, and economic growth, reveals the characteristics and patterns of the new economy represented by the internet economy, analyzes the role of foreign direct investment and financial deepening in China's economic growth, and proposes the institutional causes of deflation and the long-term nature of deflationary pressure. The book offers unique insights into theoretical analysis, empirical analysis, and policy analysis.