Policy diffusion as empowerment: domestic agency and the institutional dynamics of monetary policy diffusion in China

ABSTRACT

The policy diffusion literature has often focused on external pressures on domestic policy. However, by analysing the evolution of China’s monetary policy regime, we demonstrate a pattern of highly selective diffusion that is largely shaped by domestic political and institutional dynamics. We use an historical institutionalist approach to probe how the most relevant institutionally embedded agents, in this case, those within the Chinese central bank, have strategically engaged with this process. We show how selective diffusion has been shaped by epistemic policy learning through international engagement by China’s central bankers, and, in particular, how they have strategically used imported policy ideas as an institutional empowerment strategy, furthering the interests and agenda of the People’s Bank of China.

KEYWORDS:

• Policy diffusion
• historical institutionalism
• monetary policy
• China

Additional information

Notes on contributors

Stephen Bell

Stephen Bell is Professor in the School of Political Science and International Studies at the University of Queensland, where he teaches mainly in political economy. His research interests cover political economy, the politics of economic policy and business politics. His most recent books Fair share: Competing claims and Australia’s economic future (Melbourne: Melbourne University Press, with Michael Keating); Masters of the universe, slaves of the market (Cambridge: Harvard University Press, with Andrew Hindmoor) and The rise of the people’s bank of China: The politics and structural dynamics of institutional change (Cambridge: Harvard University Press, with Hui Feng).

Dr. Hui Feng is an ARC Future Fellow and Senior Research Fellow at the Griffith Asia Institute, Griffith University, Australia. His areas of interests include international political economy, globalization, the economic transition of the former communist countries, especially Chinese politics and political economy. His most recent book is The rise of the people’s bank of China: The politics and structural dynamics of institutional change (Cambridge, MA: Harvard University Press, with Stephen Bell).

Hui Feng

Stephen Bell is Professor in the School of Political Science and International Studies at the University of Queensland, where he teaches mainly in political economy. His research interests cover political economy, the politics of economic policy and business politics. His most recent books Fair share: Competing claims and Australia’s economic future (Melbourne: Melbourne University Press, with Michael Keating); Masters of the universe, slaves of the market (Cambridge: Harvard University Press, with Andrew Hindmoor) and The rise of the people’s bank of China: The politics and structural dynamics of institutional change (Cambridge: Harvard University Press, with Hui Feng).

Dr. Hui Feng is an ARC Future Fellow and Senior Research Fellow at the Griffith Asia Institute, Griffith University, Australia. His areas of interests include international political economy, globalization, the economic transition of the former communist countries, especially Chinese politics and political economy. His most recent book is The rise of the people’s bank of China: The politics and structural dynamics of institutional change (Cambridge, MA: Harvard University Press, with Stephen Bell).