China's reserve requirements and their effects on economic output and assets markets during 2008-2018

Kerry Liu

International Journal of Monetary Economics and Finance, 2019, vol. 12, issue 3, 212-232

Abstract: From early 2018, China seems to have entered another around of reserve requirement ratio cuts. In fact, since the mid-2000s, China has used reserve requirements as a policy instrument much more frequently and intensively than before. This study reviews the recent developments of China's reserve requirements, and examines the linkage between reserve requirement adjustments and output growth and assets markets by using a series of univariate regressions, rolling correlations and error correction models. The results demonstrate an increasing ineffectiveness of reserve requirements ratio cuts on real economy and rising effectiveness on assets markets. Finally, this study discusses the policy implications of these findings.

Keywords: People's Bank of China; monetary policy; RRR; reserve requirement ratio. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=100621 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:ids:ijmefi:v:12:y:2019:i:3:p:212-232

Access Statistics for this article

More articles in International Journal of Monetary Economics and Finance from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().