One Country - Two Monetary Policies: Evidence from a new indicator of the PBoC¡äs monetary policy support for poor regions

Makram El-Shagi and Lunan Jiang
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Lunan Jiang: Center for Financial Development and Stability at Henan University, and School of Economics at Henan University, Kaifeng, Henan

No 2020/5, CFDS Discussion Paper Series from Center for Financial Development and Stability at Henan University, Kaifeng, Henan, China

Abstract: In recent years, one of the PBoC¡äs major issues was to avoid a generally conservative monetary policy that would jeopardize the central government¡äs poverty-alleviation strategy by limiting credit supply in rural areas where it is already scarce. We develop a range of new indicators to measure those aspects of the PBoC¡äs policy and demonstrate that the PBoC has successfully implemented policies targeted at poor counties. That is, we show that a central bank has the general potential to address regional diversity and distributional issues.

Keywords: China; fuzzy regression discontinuity; regional; monetary policy (search for similar items in EconPapers)
JEL-codes: C2 E5 I3 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:fds:dpaper:202005

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