Asymmetric adjustment of inventory investment: aggregate data evidence from China

Long, Shaobo; Ding, Lei; Ran, Rong

doi:10.1080/13547860.2020.1826390

Cited by 3 publications

(2 citation statements)

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“…Policy.-There are many instruments used by the PBC to meet the M2 growth target, including open market operations, central bank base interest rate, central bank lending, reserve requirement, rediscounting, and other tools specified by the State Council. 4 In this section, we focus our discussion on two major instruments: open market operations and changes in the reserve requirement.…”

Section: Instruments For Monetarymentioning

confidence: 99%

“…Since 2001:I, the MPR has been the only official release of how the PBC conducts monetary policy each quarter. The MPR provides an executive summary of the state of the economy along with additional descriptions of how the PBC adjusts its monetary policy actions in response to the state of the economy 4. See the link: http://www.pbc.gov.cn/english/130727/130870/index.html.…”

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confidence: 99%

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The Nexus of Monetary Policy and Shadow Banking in China

Chen

Ren

Zha

2018

American Economic Review

334

160

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We study how monetary policy in China influences banks’ shadow banking activities. We develop and estimate the endogenously switching monetary policy rule that is based on institutional facts and at the same time tractable in the spirit of Taylor (1993). This development, along with two newly constructed micro banking datasets, enables us to establish the following empirical evidence. Contractionary monetary policy during 2009–2015 caused shadow banking loans to rise rapidly, offsetting the expected decline of traditional bank loans and hampering the effectiveness of monetary policy on total bank credit. We advance a theoretical explanation of our empirical findings. (JEL E32, E52, G21, O16, O23, P24, P34)

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Section: Instruments For Monetarymentioning

confidence: 99%

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confidence: 99%