One Country – Two Monetary Policies: Evidence from a new indicator of the PBoC’s monetary policy support for poor regions

Makram El-Shagi, Lunan Jiang and Lin Zhang

Economic Analysis and Policy, 2025, vol. 86, issue C, 963-977

Abstract: In recent years, one of the PBoC’s major issues was to avoid a generally conservative monetary policy that would jeopardize the central government’s 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’s 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: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:963-977

DOI: 10.1016/j.eap.2025.03.056

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