IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v49y2013i3p103-123.html
   My bibliography  Save this article

Would a Relaxation of the Exchange Rate Regime Increase the Independence of Chinese Monetary Policy? Evidence from China

Author

Listed:
  • Shaoyu Li
  • Li-Chuan Tsai

Abstract

Some policymakers and academic researchers suggest that relaxing the exchange rate regime will increase the independence of Chinese monetary policy. To test this argument, we estimate spot interest rate models with dummy variable sets and derive an economic interpretation. The empirical results suggest that a relaxation of the exchange rate regime increases the independence of market-based monetary policy; however, it weakens the independence of monetary policy for forecasting future normal events, and it also imposes an ambiguous impact on the independence of monetary policy for forecasting future rare events.

Suggested Citation

  • Shaoyu Li & Li-Chuan Tsai, 2013. "Would a Relaxation of the Exchange Rate Regime Increase the Independence of Chinese Monetary Policy? Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(3), pages 103-123, May.
    • Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:103-123
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=UR12U83N5G318550
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ma, Yong, 2016. "Nonlinear monetary policy and macroeconomic stabilization in emerging market economies: Evidence from China," Economic Systems, Elsevier, vol. 40(3), pages 461-480.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:103-123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.