Government Policy’s Influence on Shadow Banking in China

Shadow banking in China has been viewed by government officials and industry experts as illegitimate finance, but as a key means of financing by others. For the former, the industry has been seen as overly risky, potentially undermining the formal financial system. The latter see shadow banking as an increasingly important part of the financial system, filling a gap in the provision of finance to particular sectors and smaller firms. In this paper, we seek to understand the effect of government views on shadow banking by analyzing the impact of government regulation on the shadow banking and non-shadow banking financial sector (i.e., the stock market). Using a unique data set based on data collected from various sources, we find that shadow banking regulation plays a strong role in China’s financial sector. We also discuss ways in which China’s shadow banking sector has not gone far enough in deepening Chinese finance, and make suggestions as to how regulators could lead the way in improving direct and market-based finance

Predicting Chinese Banking Policy Incidence

In this exploratory research, we examine the effect of economic and noneconomic indicators on the creation of Chinese Banking and Insurance Regulatory Commission policies using a VAR model. We find that CBIRC policies are predicted by State Council construction policies and policies set by the State Administration of Foreign Exchange. This indicates that the CBIRC is inward-looking, observing what other regulators are doing rather than responding to changes in the real and financial economy. This may be a product of market distortions due to China’s unique blend of state-oriented and market-based institutions

Predicting Chinese State-Owned Enterprise Policy Incidence

In this exploratory research, we examine the effect of economic and noneconomic indicators on the creation of Chinese state-owned enterprise policies. Using a VAR model, we find indicators that explain state-owned enterprise policy creation variance, which means that we can explain, to some extent, the incidence of state-owned enterprise policies. This reduces economic policy uncertainty, thereby having the potential to increase economic activity and reduce costs

The US financial system, the great recession, and the “speculative spread”

The Great Recession was an enormous surprise to mainstream economists, while not as much to non-mainstream economists, due to differences in views of the financial economy and its interaction with the real economy. While policy makers continue to follow mainstream economic theory, with the implication that regulation and transparency can fix any market glitches, many remain skeptical of the ability of regulation to prevent this type of crisis in the future. Deeper restructuring of the economy, with curbs on the worst practices of speculation, are necessary to provide long-term stability. We have explored one way in which to measure speculation versus production, in what we call a “speculative spread,” and suggest that this may be an important means to understanding to what degree the economy is overfinancialized

Financial Capital Overaccumulation

Overaccumulation of financial capital at the expense of the real sector resulted in falling wages as well as in the most recent global financial crisis. This is a topic of increasing interest, as the idea that some developed economies have reached a stage of overfinancialization has gained some following. In this paper, we lay out a model of overaccumulation, which can be used as a constraint on any growth model

Financial Capital Overaccumulation

Overaccumulation of financial capital at the expense of the real sector resulted in falling wages as well as in the most recent global financial crisis. This is a topic of increasing interest, as the idea that some developed economies have reached a stage of overfinancialization has gained some following. In this paper, we lay out a model of overaccumulation, which can be used as a constraint on any growth model

The US financial system, the great recession, and the “speculative spread”

The Great Recession was an enormous surprise to mainstream economists, while not as much to non-mainstream economists, due to differences in views of the financial economy and its interaction with the real economy. While policy makers continue to follow mainstream economic theory, with the implication that regulation and transparency can fix any market glitches, many remain skeptical of the ability of regulation to prevent this type of crisis in the future. Deeper restructuring of the economy, with curbs on the worst practices of speculation, are necessary to provide long-term stability. We have explored one way in which to measure speculation versus production, in what we call a “speculative spread,” and suggest that this may be an important means to understanding to what degree the economy is overfinancialized

Women in STEM Interview Analysis: Encouraging Young Female Learners in STEM Pathways

This study used a qualitative approach to examine potential obstacles to and challenges in working in a STEM field for females from underrepresented groups. Unstructured interviews with 11 adult females representing diverse groups and various STEM careers yielded important historical perspectives, along with recommendations for building STEM careers for young females today. The findings indicated the critical role of having a strong mentor, role model, or support system in place along the STEM pathway; the need to work with and engage females in STEM activities and subjects when they are as young as possible, preferably while in primary/elementary school; and the importance of developing a sense of STEM self-efficacy in young females. Recommendations are given to inform studies in science communication and informal education

Shadow banking in China

This is an English summary of a 300-page report produced by Jianjun Li, Sara Hsu and Guangning Tian, “The Annual Report of China Shadow Banking System,” Project Sponsored by the National Natural Science Foundation of China, Project Number 71173246

Shadow banking in China

This is an English summary of a 300-page report produced by Jianjun Li, Sara Hsu and Guangning Tian, “The Annual Report of China Shadow Banking System,” Project Sponsored by the National Natural Science Foundation of China, Project Number 71173246