2021
DOI: 10.3389/fpubh.2021.771364
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The Post-COVID-19 Economic Policy Uncertainty and the Effectiveness of Monetary Policy: Evidence From China

Abstract: The outbreak of the COVID-19 pandemic has caused an upsurge economic policy uncertainty (EPU). Study on the time-varying effect of EPU is of substantial implication for the central bank in implementation of monetary policy. To empirically investigate the time-varying effect of EPU, the paper considers the shock of the monetary policy implemented by China's central bank on different economic variables including interest rate, output gap, and inflationary gap using the latent threshold time-varying parameter vec… Show more

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Cited by 5 publications
(3 citation statements)
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“…Uncertainty about economic conditions brought on by COVID-19, mental health burden, fear of infection, and high mortality rate from COVID-19 are negatively impacting future birth rates [19]. It is also of important note that the COVID-19 pandemic has caused an upsurge of economic and future uncertainty in China [20], and this may also impact participants' decision to have children. As evident in China, new births plunged to their lowest in almost six decades in the year 2020 amid the uncertainties of the COVID-19 pandemic [21].…”
Section: Discussionmentioning
confidence: 99%
“…Uncertainty about economic conditions brought on by COVID-19, mental health burden, fear of infection, and high mortality rate from COVID-19 are negatively impacting future birth rates [19]. It is also of important note that the COVID-19 pandemic has caused an upsurge of economic and future uncertainty in China [20], and this may also impact participants' decision to have children. As evident in China, new births plunged to their lowest in almost six decades in the year 2020 amid the uncertainties of the COVID-19 pandemic [21].…”
Section: Discussionmentioning
confidence: 99%
“…The rapid sharing of academic and scientific information concerning COVID-19 and the subsequent condition of long COVID has been an effective way to reduce public alarm and provide real time guidance for clinicians managing patients. It has also enabled policy makers to propose future developments and evaluate the possible effectiveness of various interventions [ 25 ]. Over 6000 papers have been published on long COVID since the beginning of the pandemic; however, there are still many unanswered questions regarding its prevalence, frequency, predisposing risk factors, treatment, and rehabilitation [ 8 ].…”
Section: Introductionmentioning
confidence: 99%
“…Song et al found the COVID-19 pandemic outbreak has increased uncertainties in economic policy (EPU). Studying how EPU changes over time has important implications for how the central bank implements monetary policy [1]. This result shows the impact of monetary policy on the output gap and inflation gap.…”
Section: Related Researchmentioning
confidence: 95%