Shadow banks in China drive economic rollercoaster, study finds.
The article "Shadow banks, banking policies and China’s macroeconomic fluctuations" in the Journal of International Money and Finance explores how shadow banks and banking policies impact China's economy. The researchers found that changes in shadow banking activities and banking policies have a significant effect on China's macroeconomic fluctuations. This suggests that regulating shadow banks and adjusting banking policies could help stabilize China's economy.