久久亚洲国产成人影院-久久亚洲国产的中文-久久亚洲国产高清-久久亚洲国产精品-亚洲图片偷拍自拍-亚洲图色视频

US EUROPE AFRICA ASIA 中文
Opinion / Featured Contributors

China should not become victim of flawed currency system

By Yeomin Yoon (chinadaily.com.cn) Updated: 2016-01-19 10:04

China should not become victim of flawed currency system

A Chinese clerk counts yuan banknotes at a bank in Huaibei city, East China's Anhui province, Jan 22, 2015.[Photo/IC]

The recent turmoil in the currency market involving the renminbi and concurrent volatility in China's stock markets reminds me of the remark that James Tobin, the late Nobel laureate in economics, made right after the Asian financial crisis occurred in 1997: "The Asian economies are victims of a flawed international exchange rate system that, under US leadership, gives the mobility of capital priority over all other considerations."

It is commonly accepted in the West that free capital movement has become one of the axioms of modern global capitalism since the so-called Reagan-Thatcher revolution. As a result, despite the ample evidence of the inherent risks of short-term free capital flows, policymakers of the leading economies have seemed unable to look much beyond the assumption that the ideal world is one of free capital flows.

The late eminent economic historian Charles Kindleberger characterized short-term capital flows as "manias, panics, and crashes"; and history shows that such volatile capital flows were the major culprit in many financial crises. In the current environment characterized by increased globalization of financial markets and free capital flows, such traditional indicators of sound macroeconomic fundamentals as government budget balance, subdued inflation, and high domestic saving rates have become increasingly inadequate to prevent financial crises.

The weight of historical evidence clearly points toward restraint on capital flows, especially for emerging economies such as China which has been built by and for "patient capital". Money that pours into a country can just as easily pour out. Highly volatile short-run capital, often moved by self-fulfilling waves of euphoria or panic, can disrupt economies and cause massive swings in exchange rates.

The Economist has calculated that if only 5 percent of China's population decided to move the current per-person limit of $50,000 per year abroad, China's foreign exchange reserves would evaporate. If this happened, the international value of the renminbi would surely collapse, causing "a gratuitous unnecessary tragedy" not only to China but also to the interdependent global economy.

Some speed bumps, or "sand in the market's gears", should be imposed on short-term capital flows. Emerging economies such as China should maintain capital controls, permitting foreign direct investment while eschewing "hot money". It is an ideological humbug to argue that without free mobility of volatile short-term capital economies cannot function and their growth rates will collapse.

The writer is professor of finance and international business at the Stillman School of Business of Seton Hall University, New Jersey, and visiting professor at the University of International Business and Economics, Beijing.

The opinions expressed here are those of the writer and don't represent views of China Daily website.

Most Viewed Today's Top News
...
主站蜘蛛池模板: 亚洲精品毛片久久久久久久 | 欧美一级毛片怡红院 | 日本精品中文字幕有码 | 欧美黑人巨大xxxxxxxx | 国内久久 | 亚洲国产精品二区久久 | 国产女主播在线 | 免费一级毛片在级播放 | 亚洲欧美久久一区二区 | 免费观看一级成人毛片软件 | 久草中文在线视频 | 失禁h啪肉尿出来高h健身房 | 国产午夜精品理论片 | 免费特黄| 日韩欧美视频一区二区三区 | 黄色a三级三级三级免费看 黄色a网 | 交videos人妖 | 一级aaaaaa毛片免费 | 99精品久久99久久久久久 | 午夜欧美在线 | 99久久精品国产亚洲 | 午夜国产高清精品一区免费 | 免费人成黄页网站在线观看国产 | 一级毛片真人不卡免费播 | 免费一级欧美毛片 | 亚洲艹 | 成人做爰网站免费看 | 国产无卡一级毛片aaa | 国产成人综合亚洲 | 中国黄色一级毛片 | 嫩模大尺度人体福利视频 | 国产三级日本三级日产三 | 午夜性色福利视频在线视频 | 免费人成激情视频在线观看冫 | 美女美女大片黄a大片 | 免费人成网站免费看视频 | 国产一级做a爱片久久毛片a | 欧美日韩国产人成在线观看 | 1769视频在线观看国产 | 精品国产日韩久久亚洲 | 色丁香久久 |