A seminar titled 'Chinese Local Bond Spreads, Monetary Policy and Misallocation' will be held on June 10 in Tokyo, Japan.
Dr Robert Dekle of the University of Southern California will examine the impact of Chinese monetary policies on the excess bond yields of Chinese local bonds issued by Chinese local government entities in the event, arranged by ADBI.
Dr Dekle will discuss his research which finds that an expansion in M2 generally raises the excess yields of the bonds of Chinese local government entities, with amplified impact for local bonds issued by local governments characterized as having a high degree of existing resource misallocation. His research confirms that local government bond excess yields can be used as an indicator of the riskiness of Chinese local government debt.
Dr Robert Dekle is a Professor of Economics at the University of Southern California. He has worked on Japan and other Asian economies for over 30 years. He previously worked for the United States Federal Reserve Board of Governors and at the International Monetary Fund.
-rmc//
