Synopses & Reviews
This book analyzes why local officials in China comply with investment-reduction and inflation-control policies of the central government against their own economic interests. The book shows the importance of political institutions, and provides a political story as to why China has been able to control inflation and to deepen reforms, in contrast to the former Soviet Union. While most other studies focus on the economic or political aspects, Inflation and Investment Controls in China integrates political and economic analysis.
Review
"This is one of the most important--and richest--books to be written on post-Mao China." Steven M. Goldstein, Smith College"This new book, by Yasheng Huang is, in my view, one of the most significant studies to have appeared in many years ..." Christopher Howe, The Journal of Development Studies"...a solid book based on competent research, which is highly recommended to all China scholars." John Wong, Pacific Affairs"...a formidable work of scholarship and an impressive application of social science methodology to the study of central-provincial relations in China....Huang's book is a powerful and important counterpoint to those who would argue that Chinais on the verge of disintegration." Andrew Wedeman, The Journal of Asian Studies
Synopsis
How has the Chinese central government been able to avoid the crippling hyperinflation that has bedeviled so many developing and centrally planned economies? Focusing on central-local relations, Yasheng Huang explains why local Chinese officials comply, even against their own economic interests, with the investment-reduction and inflation-control policies of the central government. China's unique, de facto federalism, he argues - a combination of economic and fiscal decentralization and strong political centralization - has deepened reform, spurred economic growth and allowed political institutions to impose inflation restraints from the top down.
Table of Contents
Figures and tables; Acknowledgements; Abbreviations; Preface; 1. Introduction; Part I. The Economic and Political Roles of Local Government Officials: 2. Local government officials as economic agents; 3. Local bureaucrats as investors: the investment roles of local governments; 4. The local officials in the bureaucratic hierarchy; Part II. Macroeconomic Policy Developments During the Reform Era: 5. Excess investment demand and austerity policies; Part III. Analyzing Local Investment Behavior: 7. Strategic investment behavior during austerity; 8. Bureaucratic investment behavior; 9. Conclusion: Political institutions, inflation control, and economic reforms; References; Indexes.