Tuesday, July 30, 2013

Kevin Gallagher on China and financial deregulation

Kevin Gallagher explains why financial deregulation in China would be a huge mistake. In his words:
"Rumor has it that China is set to accelerate the de-regulation of its financial system.
For years, China has restricted the ability of its residents and foreign investors to pull and push their money in and out of the country.
While that may be illiberal, there was a sound reason for this restriction: Every emerging market that has scrapped these regulations has had a major financial crisis and subsequent trouble with growth."
Read the rest here.


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