Factions and Finance in China
Subtitle: Elite Conflict and Inflation
Edition: 1 edition
Publisher: Cambridge University Press
Published: 2008
Language: eng
Format: Hardcover
Number of pages: 264
ISBN-13: 9780521872577
Subjects: POLITICS & GOVERNMENT; Political Science; Politics / Current Events; Politics/International Relations; Banks & Banking; Economic Conditions; General; Money & Monetary Policy; Political Science / General; Government - General; Banks and banking; China; Finance; Government policy; Monetary policy
Description: "The contemporary Chinese financial system encapsulates two possible futures for China's economy. On the one hand, extremely rapid financial deepening accompanied by relatively stable prices drives a vigorous growth trajectory that will one day make China the world's largest economy. On the other hand, the colossal store of nonperforming loans in the banking sector augurs a troubling future. Factions and Finance in China inquires how elite factional politics has given rise to both of these outcomes since the reform in 1978. The competition over monetary policies between generalists in the Chinese Communist Party and politically engaged technocrats has time and again prevented inflation from spinning out of control. Nonetheless, elite politicians, whether party generalists or technocrats, continue to see the banking sector as a ready means of political capital, thus continuing government intervention in the banking sector and slowing down reform. Through quantitative analysis and in-depth case studies, Shih shows that elite politics has exerted a profound impact on monetary policies and banking institutions in contemporary China."--Jacket.