TY - JOUR
T1 - Monetary stimulus policy in China
T2 - The bank credit channel
AU - Zhang, Min
AU - Zhang, Yahong
N1 - Publisher Copyright:
© 2022 Elsevier Inc.
PY - 2022/8
Y1 - 2022/8
N2 - This paper develops a novel while plausible way to model the Chinese monetary transmission via open market operations (OMOs). In the model, monetary injections through OMOs, together with differentiated collateral regulation in the banking sector, directly affect banks' loan capacities, which then influence sectoral investments and aggregate GDP. The quantitative analysis shows that the 2009–2010 monetary expansion explains nearly 66% of the rise in GDP growth. Moreover, balancing credit allocation across sectors and applying unified banking regulations jointly enhance the GDP growth rate by 1.65 percentage points, with the contribution of the unified banking regulations proving more important.
AB - This paper develops a novel while plausible way to model the Chinese monetary transmission via open market operations (OMOs). In the model, monetary injections through OMOs, together with differentiated collateral regulation in the banking sector, directly affect banks' loan capacities, which then influence sectoral investments and aggregate GDP. The quantitative analysis shows that the 2009–2010 monetary expansion explains nearly 66% of the rise in GDP growth. Moreover, balancing credit allocation across sectors and applying unified banking regulations jointly enhance the GDP growth rate by 1.65 percentage points, with the contribution of the unified banking regulations proving more important.
KW - Bank credit channel
KW - Chinese economy
KW - Monetary stimulus
KW - Open market operation rule
UR - https://www.scopus.com/pages/publications/85133457952
U2 - 10.1016/j.chieco.2022.101825
DO - 10.1016/j.chieco.2022.101825
M3 - 文章
AN - SCOPUS:85133457952
SN - 1043-951X
VL - 74
JO - China Economic Review
JF - China Economic Review
M1 - 101825
ER -