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How International Finance Affects Emerging Markets

Huangthomas, to add to the amusement I should point out that even if you are right that Chinese banks cannot be compared to Mexican banks because Chinese banks are government-owned (and why exactly does government ownership protect banks from bad lending decisions?), you are still wrong. All Mexican banks were nationalized in 1982, long before the period Pettis discusses. Both banking systems were government owned, and the three distinct conditions that yopu clima make China so different from Mexico in fact also applied to Mexico.