Internationalizing Like China

主讲人：Christopher Clayton（Yale School of Management）

主持人：余昌华（北京大学国家发展研究院）

时间：2022年10月25日（周二）上午9:00-10:30（北京时间）

地点：承泽园246教室

Zoom会议号：926 3889 7210

密码：908060

摘要：

We empirically characterize how China is internationalizing the Renminbi by selectively opening up its domestic bond market to foreign investors and propose a dynamic reputation model to explain this internationalization strategy. The Chinese government deliberately controlled the entry of foreign investors into its market, first allowing in relatively stable long-term investors like central banks before allowing in flightier investors like mutual funds. Our framework explains these patterns as the result of a government strategy to build its reputation as an international currency issuer while attempting to reduce the cost of potential capital flight as it tries to gain credibility. The dynamics of reputation make Chinese debt a substitute for emerging market risky debt in the early stages of internationalization and more of a substitute for developed market safe debt in the later stages. We use our framework to explore how countries compete to become a reserve currency provider. Competition worsens the incentives to build up reputation by reducing the benefits of having a higher reputation. The framework is tractable and can make sense of both new entrants like China and established players like the United States.

主讲人介绍：

Christopher Clayton does research in finance, international macro-finance, and macroeconomics. His recent research topics include multinational banking, financial regulation and resolution, and monetary policy. He received a PhD in Economics from Harvard University, and a BA in Economics and Mathematics from the University of Chicago.