Pardee Center Task Force Report, October 2014

Capital Account Liberalization in China: The Need for a Balanced Approach

October 2014 (130 pages)
ISBN 978-1-936727-11-7
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(Note: A corrected version of this report was posted on 10/24/2014)

This is the third report stemming from the Pardee Center Task Force on Regulating Capital Flows for Long-Run Development, a project of the Global Economic Governance Initiative (GEGI) at Boston University.

This report is the collective work of experts examining the benefits and risks of accelerated capital account liberalization in China. The contributing authors – all leading scholars and practitioners from around the world (listed below) – met at Boston University in February 2014 to discuss the experiences of other emerging market countries that liberalized the capital account to glean lessons for China as it considers this delicate task. This volume is an outcome from that meeting, presenting the authors’ perspectives on important aspects of capital account liberalization that China should pay special attention to, not only for its own sake, but also in consideration of the potential impacts that China’s actions may have on other emerging markets and the global economy overall.

The co-chairs for this Pardee Center Task Force Report are Kevin P. Gallagher, co-director of GEGI; José Antonio Ocampo of the Initiative for Policy Dialogue (IPD) at Columbia University; and Ming Zhang and Yu Yonding of the Institute for World Economics and Politics (IWEP) at the Chinese Academy of Social Sciences. GEGI, IPD, and IWEP are co-sponsors of this report, and IWEP will oversee publication of a Chinese translation. The Pardee Center for the Study of the Longer-Range Future and the Center for Finance, Law & Policy at Boston University also provided support for this project.

The first two reports of the Pardee Center Task Force on Regulating Capital Flows for Long-Run Development are available here and here.  All three reports and other publications of the Global Economic Governance Initiative are available at the GEGI website. View the executive summary to this report “Capital Account Liberalization in China: A Cautionary Tale.”

Report Contributing Authors