Ties that Bind: Estimating the Natural Rate of Interest for Small Open Economies

Grossman, Valerie Aarne; Martínez‐García, Enrique; Wynne, Mark A.; Zhang, Ren

doi:10.2139/ssrn.3354898

Cited by 2 publications

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References 42 publications

(11 reference statements)

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“…Overall, the findings from the regression models constructed for the five economies under consideration present sufficient support for the explanatory variables, i.e., CPI and real GDP having a significant impact over the policy interest rates, as being helpful while determining the future trends of the interest rates for the economies. This comes in especially helpful in examining the impact of the Covid-19 pandemic on the real GDP in the economy and the resultant impact on the policy interest rates ( 23 – 25 ).…”

Section: Resultsmentioning

confidence: 99%

An Evaluation of the Impact of Monetary Easing Policies in Times of a Pandemic

Sun

Chen

2021

Front. Public Health

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This article tests five major economies of the world, United Kingdom, Japan, Brazil, Chin and lastly, India, for the changes in the monetary policy decisions that have been implemented following the Covid-19 outbreak. The assessment was undertaken in the form of an event study analysis, further substantiated with a regression analysis conducted for exploring the significance of CPI and real GDP in predicting the policy interest rates in the economy. The results of the event study analysis presented that the abnormal changes in the interest rates were statistically significant in the case of the United Kingdom, Brazil, and China, while the abnormal changes were found to be statistically insignificant in the case of India and Japan.

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Section: Resultsmentioning

confidence: 99%

An Evaluation of the Impact of Monetary Easing Policies in Times of a Pandemic

Sun

Chen

2021

Front. Public Health

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Has China’s Belt and Road Initiative Intensified Bilateral Trade Links between China and the Involved Countries?

Ren

et al. 2020

Sustainability

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The Belt and Road Initiative (BRI) is designed to intensify reciprocal trade preferentiality between China and the Belt-Road countries. However, there has been little research empirically examining the policy effects on the trade links between China and the involved countries. This paper attempts to evaluate the BRI effects quantitatively by constructing a new bilateral revealed trade preference index to measure the bilateral trade preferentiality between China and its 114 trading partners. Using a difference in differences model, we show that the trade of China with the Belt-Road countries has become more preferentially linked since the implementation of the BRI. In particular, the bilateral revealed trade preference index between China and the Belt-Road countries has grown approximately 8% faster than has that with the non-Belt-Road countries. We further show that the BRI effects are heterogeneous across different regions. The bilateral trade links have been more significantly intensified in the regions of the China–Indochina Peninsula Economic Corridor, the China–Pakistan Economic Corridor, the China–Central Asia–West Asia Economic Corridor and the Bangladesh–China–India–Myanmar Economic Corridor. The findings strongly indicate that BRI has been acting as a catalyst for intensifying bilateral trade preferentiality between China and the Belt-Road countries.

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Ties that Bind: Estimating the Natural Rate of Interest for Small Open Economies

Abstract: This paper estimates the natural interest rate for six small open economies (

Cited by 2 publications

References 42 publications

An Evaluation of the Impact of Monetary Easing Policies in Times of a Pandemic

An Evaluation of the Impact of Monetary Easing Policies in Times of a Pandemic

Has China’s Belt and Road Initiative Intensified Bilateral Trade Links between China and the Involved Countries?

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