To guide or not to guide? Quantitative monetary policy tools and macroeconomic dynamics in China

Hongyi Chen, Michael Funke, Ivan Lozev and Andrew Tsang

No 3/2017, BOFIT Discussion Papers from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: 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.

JEL-codes: C61 E32 E44 E52 (search for similar items in EconPapers)
Date: 2017
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Related works:
Journal Article: To Guide or Not to Guide? Quantitative Monetary Policy Tools and Macroeconomic Dynamics in China (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofitp:bdp2017_003

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