To guide or not to guide? Quantitative monetary policy tools and macroeconomic dynamics in China
Chen, Hongyi; Funke, Michael; Lozev, Ivan; Tsang, Andrew (27.02.2017)
Numero
3/2017Julkaisija
Bank of Finland
2017
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201702271168Tiivistelmä
This paper discusses the macroeconomic effects of China’s informal banking regulatory tool “win-dow guidance,” introduced in 1998. Using an open-economy DSGE model that includes the com-mercial banking sector, we study the stabilizing effects of this non-standard quantitative monetary policy tool and the implications of quantity-based vs. price-based monetary policy instruments for welfare. The analyses are relevant to the current overhaul of Chinese monetary policy.
Julkaisuhuomautus
Published in International Journal of Central Banking, IJCB, Vol. 16, No. 5, October 2020, pp. 49–94