Supervisor(s): Chinese Academy of Social Sciences Sponsor(s): Institute of World Economics and Politics Chinese Academy of Social Sciences CN：11-3799/F
International Economic Review is supervised by Chinese Academy of Social Sciences, and sponsored by Institute of World Economics and Politics, Chinese Academy of Social Sciences. It is the only publication dedicated to publish academic reviews on the international economy in China. It aims to review the international economic and political activities based on China’s position from an academic perspective. Its scope covers international economic and political activities and development, particularly those with an emphasis on the international economic activities related to China. The journal is included in CSSCI.
SOEs (state-owned enterprises) play an important role in the national economy. Since the 1980s, the state ownership of SOEs in western countries has evolved from the decentralized model to a centralized model; there are also some countries that have formed a relatively stable governance model of dual ownership. As the owner of SOEs, the state should take responsibilities including formulating state ownership policy; exercising its ownership rights as the owner within the jurisdiction of law; but the state should not interfere in the normal management of SOEs. Improving operational transparency is a necessary means to improve corporate governance of SOEs. As it make efforts to reform its SOEs, China should re-evaluate the role of administrative departments of state-owned assets, establish accountability mechanisms regarding the operation and management of SOEs and improve the transparency of information and disclosure of SOEs.
The U.S. and European financial authorities have joined hands to integrate the segmented and scattered micro financial data system in recent years, trying to establish a standardized global financial statistical system. That behind the silent financial statistical system revolution, which has been ignored by many people, is the significant transformation of the financial regulation philosophy and risk analysis methodology. The new micro financial statistical system mainly involves legal entity identification, financial transaction identification, and financial instrument identification, with the global legal entity identifier system having made the most headway. The macro-prudential regulation framework based on the new data platform stands for the direction of the international financial regulation reform and may become the new international standard for financial regulation. For China, the financial statistical system revolution will have both positive and negative effects, and China faces such challenges as inadequate academic preparation, lack of interest from its financial institutions and the flawed macro-prudential regulation framework.
Further widening renminbi daily trading band will not help to enhance the flexibility of renminbi’s exchange rate. Therefore, further expansion of the floating band alone will not necessarily provide more room for macroeconomic policy adjustments. Admittedly, expanding the floating band would potentially raise the risk of carry trade on renminbi-denominated assets, thus helping reduce the pressure of the risk of cross-border capital flows. However, since renminbi is still subject to the regulation of the daily central parity rate, in the longer term, widening the floating band would not help significantly raise the fluctuation of renminbi exchange rate to thwart carry trade; instead, it could potentially lead to more arbitrage opportunities. Therefore, there is no urgent need for further expanding the renminbi floating band. The key to the reform of renminbi exchange rate regime right now lies in the establishment of a more transparent and market-oriented mechanism for setting renminbi central parity rate.
In developing China, the obvious, fast and intensified population aging has attracted a lot of attention. Population, which was originally a “slow variable,” has increasingly become a “fast variable” in China over recent years. This article summarizes the debates and consensus on the relationship between population aging and monetary policymaking in academia. It finds that the influence of population aging on economic growth is probably mainly negative. It is still quite controversial whether population aging affects the inflation target of monetary policy, and the effects of transmission channels of the monetary policy will differ in the context of population aging. In addition, the special background of “getting old before getting rich” makes China significantly different from other countries in terms of the environment for monetary policy operation.
Russia aims to reclaim the glory of the past by forming the Eurasian Union as part of the rejuvenation strategy, while the US aims to continue to serve as the world leader. From a realistic perspective, through the Ukraine crisis, the US has once again tested and exercised its political leadership on Europe and reinforced the protective role of North Atlantic Treaty Organization (NATO) in the EU. Moreover, it has successfully prevented the resurgence of Russia and the formation of the Eurasian Union through imposing all-round sanctions on Russia. The US needs Russia as a threat to Europe, but it does not want Russia to include Ukraine into the Eurasian Union. In other words, a Russia that is not in a normal development track is in the best interest of the US. However, an increasing number of signs show that the leadership of the US is facing major challenges that it has never encountered in the post-Cold War era.
Constructed from June 1906, Sunning Railway may be regarded as the inception of the development of Public-Private Partnership (PPP) model in China that includes five stages: exploration, experimentation, promotion, adjustment and regulation. On May 19th, 2015, the General Office of the State Council forwarded “Guiding Opinions on Promoting the Model of Cooperation between Government and Social Capital in the field of Public Service” to the Ministry of Finance, National Development and Reform Commission (NDRC) and The People's Bank of China, boosting PPP to an unprecedentedly strategic level. In China, PPP is mainly carried out in three ways—service procurement, franchise and equity cooperation—and it confronts multiple bottlenecks and obstacles in the growth. So the Chinese government should cope with these bottlenecks and obstacles actively, striving to create an ecological environment suitable for PPP development so as to greatly promote the sustainable development for PPP.
PPP (Public-Private Partnership) indicates the long-term partnership established between the government and private sectors for the supply of public goods. PPP can be classified into different models according to different extents of private player participation, the ways of charging fees and the ways of calling for bids. In terms of global development of PPP, the UK and Canada who are at the mature stage have been leaders in the field of PPP. For China's PPP development, it is required to understand the implications and functions of PPP, learn from overseas experience of PPP development, strengthen the rule of law and accelerate the establishment of multilevel capital market, and emphasize the functions of local governments. Meanwhile, it is required to promote publicity of PPP so as to obtain the public support.
This global financial crisis leads to people’s reflections on the current unfair international monetary system. Developing the super-sovereign reserve currency becomes a choice of replacing the dollar standard in the long run. However, given that external debt has been the main source of the creation of the international liquidity, the N-1 hypothesis determines that it requires at least one economy to have deficits in the trade balance or current account balance to solve this problem. The gold standard and the optimal common currency area—the practice of the euro area, show that the choice of the super-sovereign currency neither based on the physical standard nor based on the credit standard cannot solve the well-organized adjustment of the balance of international payments. Thus, the super-sovereign currency may not be the ultimate optimal solution.
