Financial Systems at the Crossroads

Lessons for China

Financial Systems at the Crossroads: Lessons for China is written by leading financial experts to study the causes of financial disasters internationally. The research team is drawn from the global research networks of three leading universities: the Antai College of Economics and Management at Shanghai Jiao Tong University, the School of Economics at Fudan University, and the Earth Institute at Columbia University.

This review volume identifies the regulatory framework to guide the emergence of efficient financial institutions that are prudent; and to specify the required institutional mechanisms to prevent and resolve systemic collapse. It examines the specific circumstances of China to come up with a comprehensive agenda to reform China's financial sector. It provides in-depth analysis of China's financial industry to show its future evolution and offers lessons for developing a financial system that is efficient, innovative and resilient.

Contents:

• Analytical Overview:

  • Mobilizing China's Financial Sector Efficiently and Safely for Sustaining Economic Transformation and Strengthening Global Financial Stability (Yingli Pan, Jeffrey D Sachs, Wing Thye Woo and John Qi Zhu)

• Understanding the Important Lessons from the International Experience:

  • Wall Street Lawlessness (Jeffrey D Sachs)
  • Systemic Lack of Prudence in Wealthy Nations: Avoiding the Dark Side of Financial Development (Peter Boone and Simon Johnson)
  • Lessons from the Financial Liberalization in the Nordic Countries in the 1980s (Seppo Honkapohja)
  • Asian Financial Markets and Financial Internationalization in China (Kiyohiko G Nishimura)
  • Tokyo's Ultimately Failed Bid for First Tier International Financial Centre Status: Why Did It Fall Short and What are the Lessons for Shanghai? (Huw McKay)

• Designing the Right Financial System for China:

  • The Great Accommodation: Chinese Central Banking in the New Millennium (Junhui Qian and Wing Thye Woo)
  • The Structural Friction in China's Banking System: Causes, Measurement and Solutions (Hongzhong Liu and Tai Qin)
  • Credit Rationing, Bank Bailouts, and the Deleterious Impact of Credit: Evidence from China (Jean Louis Arcand)
  • The Options for Reforming the Renminbi Exchange Rate Regime (Xinru Wu, Yingli Pan, Zhichao Zhang, Jing Nie and Si Zhou)
  • The Internationalization of the Renminbi is in Accordance with China's National Interests and Global Responsibilities (Yingli Pan, Yingfeng Xu and Jun Wu)
  • Reforming China's Rural Financial Market (Xi Zhu)

Readership: Graduate students and researchers in financial industry, financial analysts and China-watchers.
Key Features:

• Written by leading financial experts from the global research networks of Shanghai Jiao Tong University, Fudan University and Columbia University
• Studies the causes of financial disasters internationally
• Examines the specific circumstances of China to come up with a comprehensive agenda to reform China's financial sector
• Provides in-depth analysis of China's financial industry to show its future evolution
• Offers lessons for developing a financial system that is efficient, innovative and resilient