Schellekens, Philip2013-10-102013-10-102013-05https://hdl.handle.net/10986/16115Three decades of rapid growth and structural change have transformed China into an upper-middle-income country and global economic powerhouse. China's transformations over this period wielded increasing influence over the development path of other countries, either directly through bilateral trade and financial flows or indirectly through growth spillovers and terms of trade effects. Looking ahead, as China embarks on a new phase in its development journey, a phase characterized by slower but higher-quality growth, the economic landscape facing the developing world is expected to be redefined yet again. As China changes, so will its interactions with the outside world. China is expected to remain both a market and a competitor, but its changes are likely to lead to new opportunities for many and new challenges for some. Key questions in this respect are: (i) how will the level and composition of China's import demand evolve as its economy slows and rebalances; (ii) to what extent will the presumed out-migration of labor-intensive manufacturing materialize and create new opportunities elsewhere; and (iii) how quickly will China move up the value chain and redefine its competitive advantage in the global marketplace? How these uncertain long-term developments affect individual countries will depend on differences in total supply chain costs, resource availability, and innovation capability. As in the past, China's transformations are expected to put formidable pressure on countries to adapt and reform, requiring both political will and entrepreneurial capacity, in a collective race where success will be measured against a rapidly moving frontier.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCUMULATION OF RESERVESAGGREGATE DEMANDARBITRAGEASSET PRICEASSET PRICE BOOMSASSET PRICESASSETSASYMMETRIC INFORMATIONBALANCE SHEETBALANCE SHEETSBANK FOR INTERNATIONAL SETTLEMENTSBANKING CRISESBANKING CRISISBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBONDSBORROWERBUFFERBUFFERSBUSINESS CYCLESCAPITAL ACCOUNTCAPITAL ADEQUACYCAPITAL CONTROLSCAPITAL FLOWCAPITAL FLOWSCAPITAL INFLOWCAPITAL INFLOWSCAPITAL RATIOSCAPITAL STANDARDSCAPITALIZATIONCASH TRANSFERSCENTRAL BANKCENTRAL BANKINGCENTRAL BANKSCOLLATERALCONSOLIDATIONCORNER SOLUTIONCORNER SOLUTIONSCREDIT EXPANSIONCREDIT GROWTHCREDIT LINECREDIT SPREADSCROSS-BORDER CAPITALCURRENCYCURRENCY MISMATCHESCURRENT ACCOUNTCURRENT ACCOUNT BALANCESCURRENT ACCOUNT SURPLUSDEBTDEPOSITORSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDISCRETIONARY MONETARY POLICYDISEQUILIBRIUMDISINTERMEDIATIONDISTORTIONSDOMESTIC CREDITDOMESTIC CREDIT GROWTHECONOMIC ENVIRONMENTECONOMIC OUTLOOKECONOMIC RESEARCHELASTICITYEMERGING ECONOMIESEMERGING MARKETSEQUILIBRIUMEQUILIBRIUM VALUEEQUITIESEXCHANGE RATEEXCHANGE RATE APPRECIATIONEXCHANGE RATE FLEXIBILITYEXCHANGE RATE FLUCTUATIONSEXCHANGE RATE INTERVENTIONSEXCHANGE RATE MANAGEMENTEXCHANGE RATE REGIMEEXCHANGE RATE REGIMESEXCHANGE RATESEXCHANGE-RATEEXOGENOUS SHOCKSEXPOSUREEXTERNALITIESFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTSFINANCIAL INSTABILITYFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL REGULATIONFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMSFINANCIAL VULNERABILITIESFISCAL IMBALANCEFISCAL POLICYFLEXIBLE EXCHANGE RATESFOREIGN CAPITALFOREIGN CURRENCYFUNGIBLEGDPGLOBAL BANKINGGLOBAL FINANCIAL SYSTEMGLOBALIZATIONGROSS DOMESTIC PRODUCTHOUSINGHUMAN CAPITALIMBALANCESINCENTIVE STRUCTUREINDIVIDUAL FIRMSINFLATIONINFLATION TARGETINGINFLOWS OF CAPITALINSTRUMENTINTEREST RATEINTEREST RATE HIKESINTERNATIONAL ECONOMIC POLICYINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL SETTLEMENTSLEADING INDICATORSLEVERAGELIQUIDITYLIQUIDITY REQUIREMENTSLIQUIDITY RISKSLOANLONG-TERM EQUILIBRIUMMACROECONOMIC EFFECTSMACROECONOMIC FLUCTUATIONSMACROECONOMIC MODELMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMARKET EUPHORIAMARKET FAILURESMARKET TRENDSMATURITYMINIMUM CAPITAL REQUIREMENTMINIMUM CAPITAL REQUIREMENTSMONETARY AUTONOMYMONETARY FUNDMONETARY POLICIESMONETARY POLICYMONETARY POLICY DECISIONSMONETARY TRANSMISSIONMONETARY TRANSMISSION MECHANISMSNATIONAL ECONOMIESNATURAL RESOURCESNEGATIVE EXTERNALITIESNET CAPITALOPTIMIZATIONOUTPUTOUTPUT GAPOUTPUT GAPSPERMANENT SHOCKSPOLICY RESPONSESPORTFOLIOPORTFOLIOSPOVERTY REDUCTIONPRICE FLUCTUATIONSPRICE VOLATILITYPROBABILITY OF DEFAULTPRODUCTIVITYPROVISIONING RULESPRUDENTIAL REGULATIONREAL ESTATEREAL EXCHANGE RATESREGULATORSREGULATORY FRAMEWORKREGULATORY REFORMSREGULATORY STANDARDSRESERVERESERVE REQUIREMENTSRISK MANAGEMENTRISK MEASUREMENTRISK TAKINGSHORT-TERM INTEREST RATESHORT-TERM INTEREST RATESSIDE EFFECTSSOCIAL COSTSSTABLE INFLATIONSTRUCTURAL SHOCKSSURCHARGESSYSTEMIC RISKTEMPORARY CAPITAL INFLOWSTERMS OF CAPITALTRANSACTIONTRANSACTION COSTSTRANSMISSION MECHANISMSUNCERTAINTYYIELD CURVEWorld Bank10.1596/16115