Abstract
Abstract. China’s monetary policy has evolved from obscurity into spotlight due to its torrid economic expansion in recent times, as well as its exchange rate regime that has been under constant scrutiny of its trading partners. While China’s economy is centrally-planned, it is veering more towards a market-based system with goals of stability and growth. With this in mind, this paper is an introspection of China’s monetary policy since the establishment of the People’s Bank of China (PBC) to the present. Additionally, this paper surveys empirical literature on the effectiveness of policy tools undertaken by the PBC. Recommendations are made to Chinese monetary authority on how to navigate the turbulent waves of economic fluctuations with a managed exchange rate, within its borders and beyond.
Keywords. Community tourism, Households, Island, Logistic regression, Income, Traditional trades.
JEL. I13, I20, I30.
References
Burdekin, R.C., & Siklos, P.L. (2008). What has driven Chinese monetary policy since 1990? Investigating people's bank's rule. Journal of International Money and Finance, 27(5), 847-859. doi. 10.1016/j.jimonfin.2008.04.006
Chen, K., Higgins, P., Waggoner, D.F., & Zha, D. (2016). China pro-growth monetary policy and its asymmetric transmission. Simpson Center Conference. [Retrieved from].
Duo, X. (2002). Analysis of the development of China's money market. China & World Economy, 10, 29-37.
Geiger, M. (2006). Instruments of monetary policy in China and their effectiveness: 1994 - 2006. United Nations Conference on Trade and Development, Discussion Papers, No.187. [Retrieved from].
Goodfriend, M., & Prasad, E. (2006). Monetary policy implementation in China. BIS Papers, No.31, 25-38. [Retrieved from].
Guo, Y., & Ma, W. (2016). Time-varying coefficient Taylor rule and Chinese monetary policy: Evidence from the time-varying cointegration. Journal of Economic Development, 41(4), 27-44.
Ikeya, K. (2002). China: Unique strengths and weaknesses of monetary policy. R&I Asian Focus. Rating and Investment Information Inc., Tokyo.
Lardy, N.R. (2005). Exchange rate and monetary policy in China. Cato Journal, 25(1), 41-47.
Laurens, B.J., & Maino, R. (2007). China: Strengthening monetary policy implementation. IMF Working Paper. [Retrieved from].
Luo, D., & Yao, S. (2010). World financial crisis and the rise of Chinese commercial banks: An efficiency analysis using DEA. Journal of Applied Financial Economics, 20(19), 1515-1530. doi. 10.1080/09603107.2010.508717
Ping, X., & Xiong, L. (2003). Taylor rule in transition economies: A case of China's monetary policy. International Research Forum on Monetary Policy Conference Paper. [Retrieved from].
Porter, N., & Xu, T. (2009). What drives China's interbank market? IMF Working Paper. No.09/189. [Retrieved from].
Xie, P., & Luo, X. (2002). Taylor rule and its empirical test in China's monetary policy. Journal of Economic Research, 3(1), 3-12.
Xie, P., & Yuan, Q. (2003). Analysis of the effects of China's interest rate policy in recent years. Journal of Financial Research, 275, 1-13.
Yao, S., Luo, D., & Loh, L. (2011). On China's monetary policy and asset prices. China Policy Institute Discussion Paper, 71, 1-34. [Retrieved from].
Yu, Q. (1997). Economic fluctuation, macro control, and monetary policy in the transitional Chinese economy. Journal of Comparative Economics, 25(2), 180-195. doi. 10.1006/jcec.1997.1461
Yue, Y.-d., & Zhou, S.-h. (2007). Empirical analysis of the monetary policy transmission through interest rate channel in China. Chinese Business Review, 6(3), 8-13. doi. 10.5539/ijef.v4n1p204
Zhang, Y., & Wan, G. (2002). Household consumption and monetary policy in China. China Economic Review, 13(1), 27-52. doi. 10.1016/S1043-951X(01)00055-4
