The Capitalism and Freedom in the Twenty-First Century Podcast Matteo Maggiori on China, Geoeconomics and Exchange Rates | Hoover Institution
24 snips
Dec 19, 2025 In this engaging discussion, Matteo Maggiori, a prominent economist at Stanford and the Hoover Institution, shares insights from his journey from JP Morgan to academia. He delves into China's evolving capital markets and the impact of foreign investments on its global reputation. Matteo explains the concept of geoeconomics, discussing how nations utilize trade and finance as strategic tools. He also explores the challenges in measuring economic power, the influence of beliefs on investment portfolios, and the complexities of exchange rates in a global economy.
AI Snips
Chapters
Transcript
Episode notes
From Rome Trader To Stanford Professor
- Matteo Maggiori stumbled into academia after studying economics in Rome and working as a trader at J.P. Morgan.
- A visiting economist convinced him to pursue graduate study, leading to a PhD at Berkeley and an academic career.
China's Gradual Market Internationalization
- China opened its huge domestic bond market gradually and launched Bond Connect in 2017 to let foreigners trade more easily.
- That process is a reputation-building trial where countries must endure crises to prove they won't lock out foreign investors.
Two-Way Flows Over Current-Account Change
- China seeks two-way gross flows to internationalize without forcing a current-account shift.
- It liberalizes capital controls while allowing locals to invest abroad to keep net flows stable.