EconPapers    
Economics at your fingertips  
 

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 Economies in Transition

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)
New Economics Papers: this item is included in nep-cba, nep-cna, nep-dge, nep-mac, nep-mon and nep-tra
Date: 2017-02-27
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Published in Forthcoming in International Journal of Central Banking

Downloads: (external link)
https://helda.helsinki.fi/bof/bitstream/123456789/14601/1/dp0317.pdf (application/pdf)

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:bof:bofitp:2017_003

Access Statistics for this paper

More papers in BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland. Contact information at EDIRC.
Bibliographic data for series maintained by Minna Nyman ().

 
Page updated 2019-10-22
Handle: RePEc:bof:bofitp:2017_003