Second, the corporate restructuring efforts of individual firms will expose the macro economy to downside pressures. This is an example where what are rational strategies from the viewpoint of individual firms may have undesirable effects on the economy as a whole.
22 Some of the capital outflows have been Chinese corporations paying down foreign currency debt, which is a good thing. The People’s Bank of China still has around $ trillion in reserves. There is concern in markets that, if capital account pressures were to continue, the central bank may have to either lower its target range for the currency or introduce more-stringent capital controls.