None
EN
Comment on The return of China’s capital flight woes by A Critical Look at China’s One Belt One Road Initiative - spiked
[]
Comments for China Economic Review
There are now several signs that the conditions that originally led to the first massive wave of capital flight have returned.
Before listing the reasons why a second bout of capital flight is looking increasingly likely, let us first address the underlying question: is capital flight truly so damaging for a country that fighting it can be economically justified?
If capital flight is severe, such bubbles are deprived of funding and can subsequently burst, potentially causing a damaging crisis.
There are currently both fundamental and psychological factors that point to the possible return of capital flight.
Perhaps the most likely cause of renewed capital flight would be a possible bailout of the financial system as a part of the ongoing deleveraging campaign.
['flight'
'woes'
'exchange'
'currency'
'chinas'
'chinese'
'capital'
'country'
'foreign'
'large'
'return'
'rates'
'rate']