A Growth Perspective on Foreign Reserve Accumulation

Gong Cheng works in international macroeconomics, with emphasis on the emerging market economies. At the Banque de France, he works on issues related to the G-20 and international liquidity issues. In his talk, sponsored by the La Follette School and the Economics Department, he argues that foreign reserve accumulation, in a country such as China, is a consequence of a growth strategy induced by strong capital investment in a financially constrained economy.