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What measures Chinese monetary policy?

Listed author(s):
  • Sun, Rongrong
Registered author(s):

    This paper models the PBC's operating procedures in a two-stage vector autoregression framework. We decompose changes in policy variables into exogenous and endogenous components in order to find a “clean” monetary policy indicator whose changes are mainly policy induced. Our main findings are twofold. First, the PBC's operating procedures have evolved over time; since about 2006, they have developed to a relatively stable regime. Second, its operating procedures are neither pure interest rate targeting nor pure reserves targeting, but a mixture. A set of indicators all contain information about the policy stance. Finally, we construct a new composite indicator of the overall policy stance.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0261560615001242
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    Article provided by Elsevier in its journal Journal of International Money and Finance.

    Volume (Year): 59 (2015)
    Issue (Month): C ()
    Pages: 263-286

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    Handle: RePEc:eee:jimfin:v:59:y:2015:i:c:p:263-286
    DOI: 10.1016/j.jimonfin.2015.07.009
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30443

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