What measures Chinese monetary policy?

Sun, Rongrong

doi:10.1016/j.jimonfin.2015.07.009

Cited by 24 publications

(13 citation statements)

References 23 publications

(9 reference statements)

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“…This resulted excessive liquidity is not necessarily what the PBC wants. The PBC withdraws excessive liquidity through three ways: repo transactions, issuance of central bank bills, and increase of the required reserve ratio (Sun 2015). 7 high-powered money outstanding, controlling the quantity of money and hence the supply of bank loans; while with credit policy, the PBC is actively engaged in directing bank lending and thereby shaping the structure of bank loans.…”

Section: The Pbc's Macroprudential Policy Toolkitmentioning

confidence: 99%

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Macroprudential policy, central banks and financial stability: Evidence from China

Klingelhöfer

Sun

2019

Journal of International Money and Finance

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We study the Chinese experience and provide evidence that central banks can play an active role in safeguarding financial stability. The narrative approach is used to disentangle macropudential policy actions from monetary actions. We show that reserve requirements, window guidance, supervisory pressure and housing-market policies can be used for macroprudential purposes. Our VAR estimates suggest that well-targeted macroprudential policy has immediate and persistent impact on credit, but no statistically significant impact on output. Macroprudential policy can be used to retain financial stability without triggering an economic slowdown, or as a complement to monetary policy to offset the buildup of financial vulnerabilities arising from monetary easing. The multi-instrument framework enables central banks to achieve both macroeconomic and financial stability.

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Section: The Pbc's Macroprudential Policy Toolkitmentioning

confidence: 99%

“…2presents this overall indicator, together with the Sun monetary policy indicator (the Sun-MP index, hereafter). As discussed above, the PBC uses multiple policy tools and none of them itself is sufficient to measure the PBC's monetary policy stance (see, among others,He & Pauwels 2008;Shu & Ng 2010;Xiong 2012;Chen et al 2013;Sun 2013Sun , 2015.…”

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confidence: 99%

Macroprudential policy, central banks and financial stability: Evidence from China

Klingelhöfer

Sun

2019

Journal of International Money and Finance

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“…The announced changes are effective immediately or on the future specified date. Changes in these instruments send strong signals to markets about the PBC's policy stance (see, e.g., He & Pauwels 2008;Xiong 2012;Chen et al 2013;Sun 2013Sun , 2015, which, I expect, will arouse large responses of market interest rates. 7…”

Section: Monetary Policy In Chinamentioning

confidence: 99%

“…current managed floating exchange rate regime 10 (see. e.g., Sun 2015;Klingelhöfer & Sun 2017, 2018.…”

Section: Monetary Policy In Chinamentioning

confidence: 99%

Monetary policy announcements and market interest rates’ response: Evidence from China

Sun

2020

Journal of Banking & Finance

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The responsibility for discussion papers lies solely with the individual authors. The views expressed herein do not necessarily represent those of the CFDS. The papers represent preliminary work and are circulated to encourage discussion with the authors. Citation of the discussion papers should account for their provisional character; a revised version may be available directly from the authors. Comments and suggestions on the methods and results presented are welcome.

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“…(2017) ; Kamber and Mohanty (2018) ; McMahon et al. (2018) ; and Sun (2015 , 2018) . These papers use diverse empirical methodologies to estimate China’s monetary policy stance, and obtain results quite consistent with ours.…”

Section: Introductionmentioning

confidence: 99%

The People’s bank of China’s response to the coronavirus pandemic: A quantitative assessment

Funke

Tsang²

2020

Economic Modelling

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The People’s Bank of China (PBoC) has implemented numerous measures to cushion the impacts of the COVID-19 health crisis on the Chinese economy. Since the current monetary policy framework features a multi-instrument mix of liquidity tools and pricing signals, we employ a dynamic-factor modelling approach to derive a composite indicator of China’s monetary policy stance. Our quantitative assessment shows that the PBoC’s policy response to the outbreak of the COVID-19 pandemic has been swift and decisive. Specifically, our estimates reveal that the PBoC has implemented novel policy measures to ensure that commercial banks maintain liquidity access and credit provision during the COVID-19 crisis.

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What measures Chinese monetary policy?

Cited by 24 publications

References 23 publications

Macroprudential policy, central banks and financial stability: Evidence from China

Macroprudential policy, central banks and financial stability: Evidence from China

Monetary policy announcements and market interest rates’ response: Evidence from China

The People’s bank of China’s response to the coronavirus pandemic: A quantitative assessment

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