Handbook of Safeguarding Global Financial Stability

Chapter 1

China and Financial Globalization

M.D. Chinn* and H. Ito^†

^*Robert M. La Follette School of Public Affairs, Department of Economics and NBER, Madison, WI, USA

^†Portland State University, Portland, OR, USA

Outline

Introduction

A Brief History of China’s Financial Opening

China’s Current Account and Saving Behavior in Cross-Country Context

Explanations for China’s High Saving

Financial Development and Corporate Finance in China

Household Behavior

Government Saving

Financial Globalization and China’s High Saving

Conclusion

Acknowledgments

Glossary

Further Reading

Introduction

China’s impact on the world economy has grown substantially over the past two decades. Attitudes toward the consequences of this development can, at best, be described ...