I. Introduction
Since its inception as a modern state, China declared bankruptcy in 1921 and repudiated its debt after communist...
The local debt is a threat but also an opportunity for China's to reform its financial system
When a large number of...
China’s national audit office estimates that at the end of 2010, China's local government debt had reached 10.7 trillion yuan. According to some estimates, 20% of these...
Is local municipal government debt a serious threat to the Chinese state? My straight answer is no. It will not threat the local states but the whole country. Though...
Introduction
Since the 2008 financial crisis, the Chinese municipal governments have encouraged massive initiation of...
The Dollar, the Yuan or the Euro: The world’s next dominant reserve currency
Economies rise and fall. This article...
Ongoing financial globalization has provided significant benefits to the international monetary system but is concurrently creating structural distortions1 that, left...
I. Introduction
The rise of China over the past three decades has been astonishing. But it has lacked the one feature it needed fully...
The period of growth after the Asian Financial Crisis was characterized by fiscal prudence and conservatism, especially in East and South East Asian states. This, among...
Local governments in China operate much differently than their Western peers. Western officials are directly elected and responsive to public demands. A US or European city...
It all started in late 2008, when Beijing unveiled an Rmb4trn stimulus program in an attempt to bolster national income amid the global economic slowdown1. The package...
According to recent reports by both the Chinese Government and investment bank, UBS, total local government debt in 2011 was $2.2 trillion- almost equivalent to a third of...
Does Local Government Debt Have Chinese Economy by the Throat?
As the bright spot in the world economy after the financial crisis...
Introduction
With catch phrases like CHINA’S TICKING TIME BOMB, MOUNTAINS OF DEBT, to TOXIC MUNICIPAL BONDS. CRISIS inundating the news...
Introduction
The local debt in China has its origins in the 1994 tax reform. Although in recent years, the...
If an open economy depends on property rights, then bankruptcy law is the consummate test of its integrity. Fair and transparent creditor protections insure that capital,...
Is Local Government Debt a Serious Threat to the Chinese StateOn 27th June, 2011, National Audit Office of the People’s Republic of China released “Audit Findings on China’s...
When it comes to understanding the economic outlook, many would agree the mainland China stands outside the common sense of many economic principles. Such is the myth about...
Introduction
To cushion the global economic crisis in 2007, China came up with a credit-fueled stimulus package that resulted in...
The Chinese economy has been growing at a blistering pace, notably weathering the recent Great Recession by expanding at an average rate of 10.85% from 2008 to 2010 whilst...
Pages
You may find the following points useful in preparing your answer:
- Make sure you understand the circumstances under which a government becomes insolvent.
- Consider the circumstances under which local government debt defaults might affect the national economy.
- Don't be too disappointed if you cannot get precise information on the scale of Chinese local government debts. Approximate estimates will provide enough useful information for you to think hard about.
- What, if anything, can the Chinese government do to fix this problem?
- When it comes to encouraging prudent borrowing by government bodies, are certain constitutional arrangements better than others?
You may find the following writings of interest:
- Simon Johnson and James Kwak. "National Debt for Beginners." Available here.
- Dong Tao. “China: An informal lending ‚time bomb”. Available here.
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-Plagiarism controls will be taken prior to publishing.
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