From Intermediation by Diversion to Disintermediation: A Long-Run Perspective on Growth and Inflation (or Deflation) in China
نویسندگان
چکیده
We argue in this paper that the key to the recent sluggish growth in China is financial disintermediation. This has adversely affected investment in the non-state sector, which has been the source of much of the dynamism in the Chinese economy since reform. Our analysis suggests that the current reform strategy for China’s financial sector, while important, will not solve this fundamental problem. Rather, the solution lies in the introduction of new, privately owned, locally based financial intermediaries that can provide efficient financial intermediation for the small and medium sized enterprises in the non-state sector.
منابع مشابه
Long-term and Short-term Effects of Financial Intermediation on Economic Growth
Financial intermediation in Iran's banking system is negatively affected at least in two ways. First, there are many similarities between financial intermediation and usurious activities in the common interpretation of interest-free banking law. This encourages the banks to participate in various commercial activities. Second, the price setting policies of the central bank makes investment more...
متن کاملWhat Ails China? A Long-Run Perspective on Growth and Inflation (or Deflation) in China
Since 1994, China has experienced a prolonged period of sluggish growth and declining inflation. Prices have actually declined over much of the last three and a half years. These problems are often attributed to conditions of weak aggregate demand. Not unexpectedly, the Chinese government has cut interest rates and pursued expansionary Keynesian policies, but these measures have largely failed....
متن کاملDeficits, Debt Financing, Monetary Policy and Inflation in Developing Countries: Internal or External Factors? Evidence from Iran
This paper focuses on internal and external factors, which influence the inflation rate in developing countries. A monetary model of inflation rate, capable of incorporating both monetary and fiscal policies as well as other internal and external factors, was developed and tested on Iranian data. It was found that, over the long run, a higher exchange rate leads to a higher price and that the f...
متن کاملReintermediation Strategies in Business-to-Business Electronic Commerce
The literature on electronic commerce (EC) and electronic marketplaces has long recognized the importance of different kinds of intermediaries and the different functions they serve [5]. The Internet is most often discussed in connection with digital intermediaries [76], as the displacement of traditional intermediaries. In this research, we propose a new conceptual framework for understanding ...
متن کاملAnalyzing Firm-Level Strategy for Internet-Focused Reintermediation
We propose a framework for understanding circumstances under which information technology (IT) innovations for electronic commerce (EC) change firmlevel strategic choices, and the economic forces behind these choices, in Internet market competition. We identify a recurring pattern of intermediation, disintermediation and reintermediation: the “IDR cycle.” With this framework, we explain technol...
متن کامل