Over the past twenty-five years China’s economic growth and employment expansion have made China a major force in the global economy, but questions remain about the effectiveness of its financial system. Is China’s financial system an appropriate system for a country undergoing such rapid growth, or is at a risk of collapse?
IMGXYZ420IMGZYX IMGXYZ419IMGZYXCarnegie’s Albert Keidel presented a summary of his working paper on development finance in China, which argues that, at the present gradual pace of reform, China’s financial system serves its current and intermediate needs. Nicholas Lardy, Senior Fellow at the Institute for International Economics, and Eswar Prasad, a Division Chief in the IMF’s Research Department and former head of the IMF’s China Division, commented on Keidel’s presentation. Pieter Bottelier, former Mission Chief of the World Bank, moderated the discussion.
