Monetary policy and its transmission channels: Evidence from China

Li, Huan; Ni, Jinlan; Xu, Yue; Zhan, Minghua

doi:10.1016/j.pacfin.2021.101621

Cited by 9 publications

(3 citation statements)

References 50 publications

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“…The results of this study are different from those of Iddrisu & Alagidede (2020) and Li et al (2021), which state that controlling the inflation rate is influenced by monetary transmission through the interest rate channel. However, this research is in line with Kumar & Dash (2020), where monetary transmission through the interest rate channel has no effect on reducing the rate of inflation.…”

Section: Discussioncontrasting

confidence: 94%

“…Jawadi et al (2016) found that transmission of monetary policy has an impact on inflation in Brazil, Russia, India, and China. In addition, Li et al (2021) observed that the monetary transmission relationship between the interest rate and the exchange rate channel is used to counter Cina's inflation rate, but the interest rate is thought to be more effective than the exchange rate channel.…”

Section: Introductionmentioning

confidence: 99%

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Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate

Setyawan,

Wasiaturrahma,

Anwar

2023

JIETcon

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The purpose of this research is to determine the effectiveness of monetary transmission on inflation in Indonesia through the interest rate and the exchange rate channel over a period of 2015Q1-2022Q4. This research analysis approach uses the variance decomposition and Vector Error Correction Model (VECM) methods. Quantitative methods are utilized, and the estimation tool used is Eviews 12. The findings of the variance decomposition analysis in this research indicate that to reduce inflation in Indonesia, monetary transmission through exchange rates is more effective than through the interest rate channel.

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Section: Discussioncontrasting

confidence: 94%

Section: Introductionmentioning

confidence: 99%

Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate

Setyawan,

Wasiaturrahma,

Anwar

2023

JIETcon

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show abstract

“…Our result resembles with the finding of Li et al. (2021) who argue that the presence of the banking sector frictions in the form of controlled variations in the deposit and loan interest rates can debilitate the strength of the credit channel of monetary policy transmission. Drawing evidence from the Chinese economy, they point out that the credit channel approximately accounts for 42% of the monetary policy transmission.…”

Section: Financial Frictions and Monetary Transmissionsupporting

confidence: 90%

Financial frictions, bank intermediation and monetary policy transmission in India

Banerjee

Behera

2023

Econ of Transit and Inst Chang

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Do the different types of financial friction have differential implications for monetary transmission in emerging economies? We investigate this question using India as the country for analysis. We adopt a New Keynesian business cycle model with bank intermediation, extend it by the Indian economy-specific features and validate with the data. The baseline model explains the co-movements of interest rates, incomplete pass-through and sluggish adjustment mechanism of the macro-financial variables for a policy interest rate shock. It identifies the collateral-constrained, financially excluded households and low proportion of savers as the primary sources of frictions causing weak monetary transmission.

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China's monetary policy surprises and corporate real investment

Tang

Zhang

2023

China Economic Review

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Monetary policy and its transmission channels: Evidence from China

Cited by 9 publications

References 50 publications

Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate

Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate

Financial frictions, bank intermediation and monetary policy transmission in India

China's monetary policy surprises and corporate real investment

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