Thursday, November 22, 2007
Dear Readers, as some of you may know, my book is on the cusp of publication. I just got advanced copies today, and you can now pre-order it at barnesandnoble.com or amazon.com. The book will ship on December 1st (amazon has the wrong info.) What is the book about? Here is a synopsis:
Factions and Finance in China: Elite Conflict and Inflation
Victor C. Shih
Cambridge University Press
The contemporary Chinese financial system encapsulates two possible futures for China’s economy. On the one hand, extremely rapid financial deepening accompanied by relatively stable prices are both manifestations of a vigorous growth trajectory that will one day make China the world’s largest economy. On the other hand, the colossal store of non-performing loans in the banking sector augurs a troubling future. Factions and Finance in China inquires how elite factional politics has given rise to both of these outcomes since the reform in 1978. The competition between generalists in the Chinese Communist Party and politically engaged technocrats over monetary policies has time and time again prevented inflation from spinning out of control. Nonetheless, elite politicians, whether party generalists or technocrats, continue to see the banking sector as a ready means of political capital, thus continuing government intervention in the banking sector and slowing down reform. Shih shows that elite politics has exerted a profound impact on monetary policies and banking institutions in contemporary China.
Stay tune for a review of the book and excerpts in the coming days!