Comparing the multi-objective effects of quantitative and price-based monetary policy tools: dual evidence from same- and mixed-frequency models

This study investigates the dynamic regulatory effects of China’s quantitative and price-based monetary policy tools on the macroeconomy, private consumption, and financial markets by applying a factor-augmented vector autoregressive model with time-varying coefficients and stochastic volatitity (SV-TVP-FAVAR) to data from 1996:Q1 to 2025:Q2, and reanalyzing the results with mixed-frequency data. The findings show that: (1) expansionary quantitative monetary policy promotes economic growth, inflation, and asset price, but initially boosts private consumption before exerting a suppressive influence; (2) contractionary price-based monetary policy helps prevent economic overheating, suppressing output and inflation, initially suppressing private consumption and fianncial market before promoting them; (3) under mixed-frequency data, there are significant differences in the lag effects and response magnitudes of monetary policy shocks, providing insights into short-term policy behaviors and supporting timely policy adjustments. Therefore, monetary authorities should select policy tools based on the economic environment to achieve regulatory objectives and maintain stable economic growth.