The Crisis and Economic Change in China
Date
2000
Authors
Yang, Yongzheng
Tyers, Rod
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
During the Asian crisis, China’s healthy reserves and low debt made possible the avoidance of a “country run”. Nonetheless, it did experience an apparently autonomous rise in private savings, a rise in capital outflow and a slowdown in growth. This paper employs global general equilibrium analysis to examine the relative contributions of external and internal shocks in China during the crisis. The savings rise appears to have been dominant domestically and, by coincidence of timing, it was a significant contributor to the international effects of the crisis. The successful defence of fixed US$ parity, however, has made the combined shocks more contractionary in China than would have been the case had it been possible to retain a flexible exchange rate regime.
Description
Keywords
Asian crisis, China, crisis-related shocks, private savings
Citation
Collections
Source
Type
Working/Technical Paper
Book Title
Entity type
Access Statement
License Rights
DOI
Restricted until
Downloads
File
Description