China’s Financial System and Economic Imbalances
In this paper, we study how the financial market frictions in the Chinese economy, especially the interest rate policies, lead to inefficient resource allocations and economic imbalances. First, the repressed low interest rate for household savings induce them to increase saving in order to prepare for future ...
https://iems.ust.hk/publications/iems-working-papers/xi-li-china-financial-system-economics-imbalances