Speaker: Associate Professor Ma Chang (Fudan International School of Finance) 

Guest introduction: Professor You Yu (Li Anmin Institute of Economics, Liaoning University)

Time: June 7, 2024 (Friday) 10:00-11:30 (Beijing time)

Location: Conference Room, 1st Floor, Wuzhou Park, Chongshan Campus, Liaoning University

Online Venue: Tencent Meeting:160-857-879

Language: Chinese/English

Abstract: We provide a financial development perspective for the joint use of foreign reserves and capital controls. Empirical evidence indicates that countries with intermediate levels of financial development have the highest reserve-to-GDP ratios, but capital controls are negatively correlated with financial development. To explain this pattern, we develop a small-open-economy model featuring endogenous growth and liquidity shocks. Both reserves and capital controls are necessary to mitigate re-sale externalities resulting from asset liquidation during liquidity crises. Our model captures financial development by the magnitude of liquidity shocks, thereby replicating the observed relationship between reserves, capital controls, and financial development.

Introduction to the speaker:

Ma Chang is an associate professor ofFudan International School of Finance. He had short-term visits to the BOFIT Research Unit of the Bank of Finland and the Hong Kong Institute of Monetary and Financial Research (HKIMR), and interned at the International Monetary Fund (IMF). Professor Ma Chang's main research areas are international finance, macroeconomics and macroprudential policy. His papers have been published in top international academic journals such as Review of Financial Studies, Journal of International Economics, Journal of the European Economic Association, etc., and have been widely studied by international mainstream media and think tanks such as The Wall Street Journal, United Nations Industrial Development Organization, VoxEU, and VoxChina. Report. In addition, Professor Ma Chang has won the 2019 Shanghai Pujiang Talent, the 2019 and 2020 Fudan University International Finance School Outstanding Research Award, the 2020 Pushan World Economics Outstanding Paper Award, and the 2020 National Natural Science Foundation Youth Science Fund Project. Professor Ma Chang received his PhD in economics from Johns Hopkins University in 2018, his master's degree in economics from Johns Hopkins University in 2017, his master's degree in finance from Renmin University of China in 2012, and his bachelor's degree in economics from Nankai University in 2009.