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Robert N. McCauley

Senior Adviser, Monetary and Economic Department, Bank for International Settlements (BIS)

Robert N McCauley serves as the Senior Advisor, Monetary and Economic Department of the Bank for International Settlements (BIS) in Basel. Prior to this, he was the Chief Representative for Asia and the Pacific of the BIS. His recent work on Asia hasincluded analyses of capital flows, regional financial integration, bond and foreign exchange markets, effective exchange rates, foreign currency bank deposits, monetary policy, and foreign banks’ domestic currency operations. Before joining the BIS, he worked for 13 years for the Federal Reserve Bank of New York serving at times as chief economist for the interagency committee of bank supervisors that rates country risk. There he wrote on international comparisons of the cost of capital, foreign bank lending to US corporations and the unprofitability of foreign direct investment in the US. In 1992 he taught international finance and the multinational firm at the University of Chicago’s Graduate School of Business.

He published several works on the euro, including the Princeton Essay, The Euro and the Dollar (1997). He also co-authored  Dodging Bullets: Changing US Corporate Capital Structures in the 1980s and 1990s (MIT Press, 1999) and the 7th Geneva Report on  the World Economy, Official Reserves and Currency Management in Asia: Myth, Reality and the Future, with Hans Genberg, Yung Chul Park and Avinash Persaud (International Center for Monetary and Banking Studies and the CEPR, 2005).

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Working Paper

Financial openness of China and India: Implications for capital account liberalisation

We gauge the de-facto capital account openness of the Chinese and Indian economies by testing the law of one price on the basis of onshore and offshore price gaps for three key financial instruments. Generally, the three measures show both economies becoming more financially open over time. Over the past decade, the Indian economy on average appears to be more open financially than the Chinese economy, but China seems to be catching up with India in the wake of the global financial crisis. Both have more work to do to open their capital accounts.

By: Guonan Ma and Robert N. McCauley Topic: Banking and capital markets, Global economy and trade Date: May 14, 2014