Factions and Finance in China Elite Conflict and Inflation [Paperback]

Shih develops a framework with which to analyze the impact of elite politics on both monetary and banking policies.Nearly all financial institutions in China are managed by members of the Communist Party, yet economists do not have a framework with which to analyze the links between banking and politics. This book is the first to develop a framework with which to analyze how elite politics impact both monetary and banking policies.Nearly all financial institutions in China are managed by members of the Communist Party, yet economists do not have a framework with which to analyze the links between banking and politics. This book is the first to develop a framework with which to analyze how elite politics impact both monetary and banking policies.How does the Chinese banking sector really work? Nearly all financial institutions in China are managed by members of the Communist Party, yet economists and even those who engage the Chinese banking sector simply do not have a framework with which to analyze the links between banking and politics. Drawing from interviews, statistical analysis, and archival research, this book is the first to develop a framework with which to analyze how elite politics impact both monetary and banking policies. This book serves as an important reference point for all subsequent work on Chinese banking.1. Introduction; 2. China's financial performance in comparative perspective; 3. The banking system: flexible institutions and party domination; 4. Factional politics and its financial implications; 5. Factional politics, distribution of loans, and inflationary cycles: several quantitative tests; 6. The collapse of discipline: the first two inflationary cycles and the fiscalization of Chinese banks; 7. The height of the politics of inflation, 19861996; 8. The long cycle: 19982006; 9. Concluding discussion. This impressive new book makes several important contributions: the case studies provide never before available accounts of elite politics,l6