Chinese Monetary Policy – From Theory to Practice

Körner, Finn Marten; Ehnts, Dirk

doi:10.2139/ssrn.2213385

Cited by 4 publications

(3 citation statements)

References 6 publications

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“…2009 (Lavoie and Wang, 2011;Körner and Ehnts, 2013), when emphasis shifted towards required reserves (LRR), the ratios of which are substantially higher and more frequently adjusted than in other economies (Ma et al, 2013). Also, government deposits (LGD)…”

Section: Datamentioning

confidence: 99%

Global liquidity and monetary policy autonomy: an examination of open-economy policy constraints

Angrick¹

2017

Cambridge Journal of Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThis paper examines the monetary policy constraints facing economies on a fixed peg or managed float regime, contrasting the Mundell-Fleming Trilemma view against the Compensation view commonly found at central banks. While the former holds that foreign exchange inflows and outflows affect the domestic money base, constraining monetary policy under nonfloating regimes unless capital controls are adopted, the latter purports that endogenous sterilisation of foreign exchange flows invalidates this trade-off. The predictions of both theories are empirically evaluated for five East Asian economies using central bank balance sheets, vector error correction models and impulse response functions. The findings indicate that the dynamics for the economies studied correspond more closely to the Compensation view than the Trilemma view, suggesting that it is a sustained loss of foreign exchange reserves that imposes a relevant constraint on autonomy rather than the adoption of a non-floating exchange rate regime.

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Section: Datamentioning

confidence: 99%

Global liquidity and monetary policy autonomy: an examination of open-economy policy constraints

Angrick¹

2017

Cambridge Journal of Economics

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“…2 Körner and Ehmts (2013), for example, define 5 phases in monetary policy in the 2000s (2000-4, inflation control; 2004-6 Fernald et. al.…”

Section: Literature Reviewmentioning

confidence: 99%

Macroeconomic Consequences of the Real-Financial Nexus: Imbalances and Spillovers between China and the U.S.

Pang

Siklos

2015

SSRN Journal

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Relying on quarterly data since 1998 we estimate, for China and the U.S., small scale econometric models that economize on the number of variables employed and yet are rich enough to provide useful insights about spillover effects between the two countries under different maintained assumptions about the exogeneity of the macroeconomic relationship between them. We conclude that inflation in China responds to credit shocks. Indeed, the monetary transmission mechanism in China resembles that of the US even if the channels through which monetary policy affects their respective economies differ. We also find that the monetary policy stance of the PBOC was helpful in mitigating the impact of the global financial crisis of 2008-9. Finally, spillovers from the US to China are significant and originate from both through the real and financial sectors of the US economy.

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“…2 Körner and Ehmts (2013), for example, define 5 phases in monetary policy in the 2000s (2000-4, inflation control; 2004-6, exchange 2013)).…”

Section: Literature Reviewmentioning

confidence: 99%

Macroeconomic Consequences of the Real-Financial Nexus: Imbalances and Spillovers between China and the U.S

Pang

Siklos

2015

SSRN Journal

View full text Add to dashboard Cite

Chinese Monetary Policy – From Theory to Practice

Cited by 4 publications

References 6 publications

Global liquidity and monetary policy autonomy: an examination of open-economy policy constraints

Global liquidity and monetary policy autonomy: an examination of open-economy policy constraints

Macroeconomic Consequences of the Real-Financial Nexus: Imbalances and Spillovers between China and the U.S.

Macroeconomic Consequences of the Real-Financial Nexus: Imbalances and Spillovers between China and the U.S

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