Kevin Gallagher Co-Authors OpEd: “China’s Financial Floodgates”
In an Op-Ed distributed to media outlets around the world by Project Syndicate Prof. Kevin P. Gallagher of the Frederick S. Pardee School of Global Studies at Boston Univeristy, and Co-Director of the BU Global Economic Governance Initiative (GEGI), and Prof. José Antonio Ocampo, former Finance Minister of Colombia and now at Columbia Univeristy, argue that “Chinese authorities should be skeptical about capital-account liberalization” and should adopt a carefully sequenced approach “when exposing its economy to the caprices of global capital flows.”
The article is based on a recent report co-led by Professors Gallagher and Ocampo that was recently launched at the BU Pardee School of Global Studies. Titled “China’s Financial Floodgates” (October 6, 2014) their new article argues:
Given the importance of China in the global economy, the denomination of an increasing share of trade and investment in renminbi seems inevitable. But China’s authorities should manage that process gradually, choosing the specific channels through which it should take place.
Indeed, China is perhaps the most successful example in history of gradual and pragmatic economic transformation. It should not allow itself to be tempted from its tried and tested course by calls for a policy that has led too many emerging economies onto the rocks.
Read full aarticle here.