The Student Room Group

capital account liberalization

if china allows full capital account liberalization, chinas investment in foreign securities could stand in future years at over 100 percent of nominal gdp, mimicking the foreign investment of the usa and other open capital account economies. this would mean a huge amount of extra liquidity into most likely other strong economies including the uk, giving macroeconomic stability and helping growth by adding liquidity into financial markets. ive read this could happen gradually in the next 10 years. so does this mean with all this new money flowing into our country and others, that the future of financial markets in the uk should be strong for a long while?

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