Srl | Item |
1 |
ID:
180635
|
|
|
Summary/Abstract |
We construct a connected network between China and the economies that are financially linked to it, based on the network topology of variance decompositions, and measure the cross-border contagion of financial risks among these economies. We then examine whether the concerted use of macroprudential policies mitigates the cross-border contagion of financial risks. The empirical results show that the tightening of macroprudential policies, especially counter-cyclical capital buffers and limits on credit growth, in economies with net spillover risk (e.g. the US and China), can reduce the cross-border spillover of domestic financial risks to other economies. The concerted use of macroprudential policies can contribute to global financial stability. However, the tightening of “capital” macroprudential policy tools will increase domestic cross-border absorption of financial risks. Hence, macroprudential regulation of cross-border capital flows must be strengthened.
|
|
|
|
|
|
|
|
|
|
2 |
ID:
103880
|
|
|
Publication |
2011.
|
Summary/Abstract |
The present paper evaluates the international status of the Chinese currency, the renminbi (RMB), by examining its use in the global market. Specifically, the discussion focuses on the recent developments of RMB trading in the global foreign exchange market, cross-border trade settlement in RMB, the Hong Kong offshore market and China's policies relating to the RMB. The evidence suggests that the use of the RMB overseas, especially in trade financing and in the off-shore market, has increased rapidly in recent years. However, compared with the size of the Chinese economy, the current scale of the use of the RMB is quite small. Although the RMB has great potential to become an international currency, its acceptance in the global economy is affected by both economic and political factors. Attaining a fully fledged international RMB is still a distant goal.
|
|
|
|
|
|
|
|
|
|