Font Size: a A A

Capital Account Liberalization Study

Posted on:2002-04-02Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y C HuFull Text:PDF
Abstract/Summary:PDF Full Text Request
For China it is completely new thing that capital move freely between different nations, and so as for the whole developing countries. Now, economy globalization is the main trend of the whole world economy development present-day. As the degree of financial market global integration deepening, and the shake of financial market aggravating, and the transmission of financial risks speeding up, the movement of enormous inter-nation private capital still accelerate. The phenomena mentioned above are severe challenge for developing countries.Because of the Asia financial Crisis, the management of capital account is very strict in China, and the authorities control rigorously of capital inflow and outflow. Shall China open the capital market further and admit international capital moving more freely after join WTO? Shall we reform exchange rate regime further and accept the complete floating rate regime when China has achieved the manageable floating rate regime on the basis of market adjustment. And the usher problem is how to select the model of capital account open and how to promote the process of opening in the course of opening to the outside world. For the questions mentioned above, this article adopts the method of combining theory analysis with positive research and studies earnestly the experience of capital account open in other nations, and makes some research especially on the mechanism of capital account open, exchange rate determination, capital movement and international reserve under the key logic line of internal and external equilibrium. And from the research, a basic conclusion is that; China as a big developing nation shall join the main trend of world economy which advocate capital account opening as quickly as possible; the basic strategy of capital account open is to proceed steadily with the gradualism model; and hi the course of capital account open, the total object is the consent between efficiency and steady under achieving the dynamic internal and external equilibrium.The paper can be divided into 8 chapters, and the basic structure and mainpoint tell as follows:Chapter; 1 puts forward the question of capital account open first, on the basis of reviewing briefly the history of capital control, the analysis aiming at the importance and the motive of capital account open point that as a big developing nation, China shall join the main trend of capital account open as quickly as possible, and the process of capital account open is to break the old equilibrium and achieve the new dynamic internal and external equilibrium at the same time.Chapter 2 using the method of combining the common and the exceptional makes the comparative analysis on the experience of capital account open between developed nations and developing nations or area, and insect the influence and the problem in the process of capital account open .Chapter 3 make historical review and investigate on the reform fact of foreign exchange system in China and the practice of free convertible of RMB in current account. The influence that will be caused in the process of capital account open and the practical problem are also studied in this chapter.Setting out from the equilibrium domestic and out-world, chapter 4 takes equilibrium and coordination as the main logic line and puts emphasis on studying the inherence mechanism on how to keep with the stability of macroeconomics. It firstly focuses on Sachs' macroeconomics general equilibrium model under open economy and then emphasizes analyzing Mundell policy mix model and Fleming-Mundell model in order to disclose the way how to make the macroeconomics going stable and coordinate through the interaction and mix of fiscal and monetary policies. Finally, it sysTemically analyzes the relationship between money, interest rate and exchange rate.Chapter 5 focuses on discussing the exchange rate determination and exchange rate system arrangement. First it makes analyses in allusion to - several typical exchange rate determination theories, including Monetary Approa...
Keywords/Search Tags:Capital Account, Currency Convertible, floating Rate Regime Internal and External Equilibrium, Capital Flow
PDF Full Text Request
Related items