| ID | 108356 |
| Title Proper | Goldilocks liberalization |
| Other Title Information | the uneven path toward interest rate reform in China |
| Language | ENG |
| Author | Shih, Victor |
| Publication | 2011. |
| Summary / Abstract (Note) | Nearly two decades after central bankers began to call for interest rate liberalization, the central bank continues to impose stringent rules on the fluctuation of deposit interest rates. This seems an unlikely outcome given widespread endorsement of liberalization by technocrats and experts both in and out of the government, China's accession to the World Trade Organization, and the technocrats' insulation from popular pressure. To be sure, local interests and central bank lobbying have driven gradual liberalization of interest rates. However, senior Chinese technocrats held on to control over interest rates because of their need to maintain state banks' dominance and to mobilize bank funds in times of economic downturns. As such, progress toward interest rate liberalization only to ok place during "Goldilocks" phases when the economy enjoyed healthy growth without high inflation. |
| `In' analytical Note | Journal of East Asian Studies Vol. 11, No. 3; Sep-Dec 2011: p.437-465 |
| Journal Source | Journal of East Asian Studies Vol. 11, No. 3; Sep-Dec 2011: p.437-465 |
| Key Words | Monetary Policy ; China ; Interest Rate ; Technocrats ; Interest Groups ; Authoritarian Regimes ; Reform |