To Guide or Not to Guide? Quantitative Monetary Policy Tools and Macroeconomic Dynamics in China

Hongyi Chen, Michael Funke, Ivan Lozev and Andrew Tsang
Additional contact information
Hongyi Chen: Hong Kong Institute for Monetary and Financial Research, Hong Kong Monetary Authority
Ivan Lozev: European Commission

International Journal of Central Banking, 2020, vol. 16, issue 5, 49-94

Abstract: This paper discusses the macroeconomic effects of China's quantity-based banking regulatory tool, "window guidance," introduced in 1998. Using an open-economy DSGE model that includes a commercial banking sector, we study the stabilizing effects of this nonstandard quantitative monetary policy tool and the implications of quantity-based versus 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: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.ijcb.org/journal/ijcb20q4a2.pdf (application/pdf)
http://www.ijcb.org/journal/ijcb20q4a2.htm (text/html)

Related works:
Working Paper: To guide or not to guide? Quantitative monetary policy tools and macroeconomic dynamics in China (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2020:q:4:a:2

Access Statistics for this article

International Journal of Central Banking is currently edited by Loretta J. Mester

More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements ().