WP20170001 Shenzhen, Bangalore, Mumbai: 3 Cities Made for Business
The report presents glimpse of economic growth of Shenzhen, Bangalore & Mumbai and the opportunities that these cities will be having provided they decide to do business and trade together.The main objective of the research report which is to introduce the 3 cities and observe how all 3 of them have grown exceptionally in the last few years at a super fast rate surpassing all other Metropolitan and super cities in the world.
WP20160005 Persistent Liquidity Shocks and Interbank Funding
This paper develops a theory of multiple maturity segments on the interbank market based on banks' liquidity management and persistence of liquidity shocks. The developed framework is embedded in a micro-founded network model which features interbank funding as an over-the-counter phenomenon and replicates financial system phenomena of network formation, monetary policy transmission, and endogenous money creation.
WP20160004 The Optimal Renminbi Exchange Rate Policy under Depreciation Anticipation
This paper establishes formal models to study optimal foreign exchange intervention policy when a currency is anticipated to depreciate by speculators, and when a central bank aims both to discourage speculative capital flows and to reduce exchange rate misalignment. In particular, we study two cases where speculators have perfect and imperfect information about the central bank’s long-run equilibrium exchange rate target.
WP20160003 Understanding Chinese Monetary Policy: A Multiple-Regime Threshold Regression Approach
This paper estimates a forward-looking Taylor-type monetary policy reaction function for the post-2000 Chinese economy, using a composite overall indicator (the Sun-MP index) to tackle the measurement uncertainty problem and hence the model selection problem. Our multiple-regime threshold regression, using two threshold variables (both output gap and inflation deviation), finds that the PBC’s policy reaction is nonlinear.
WP20160002 Some Benefits and Costs of Experimental Coastal Land Reclamation: The Case of Qianhai, China
Informed by a Coasian transaction cost paradigm (Coase 1960), this paper discusses the costs and benefits of what one may call experimental coastal reclamation of the sea as an alternative to urban expansion using intra-marginal land in a megacity. The authors argue that given certain conditions, experimental reclaimed land, while generating a Schumpeterian effect, can have a great potential to achieve win-win outcomes that enhance business and the economy, ecology, and society – a faithful adherence to the essence of sustainable development. The case of Qianhai (“Front Sea”) in China, is a test case of the international development policy of China with particular regional repercussions for Hong Kong.