Chinese Monetary Policy - From Theory to Practice PDF Download
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Author: Finn Marten Körner
Publisher:
ISBN:
Category :
Languages : en
Pages : 22
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Book Description
Chinese monetary policy constitutes a marked example of a clash between theory and practice. In theory, a fixed exchange rate regime with capital mobility turns the money supply into an endogenous variable while expansionary pressure can be alleviated by the central bank by foreign currency transactions. For China, this standard view is contended by the 'compensation thesis' as proposed by Lavoie and Wang (2012) according to which the central bank maintains discretion over money supply by using alternative balance sheet instruments. In this paper we show that the People's Bank of China's (PBoC) activities can be better characterized by the 'compensation thesis' view of alternative money supply operations. In addition, we can thus characterize the PBoC's policy stance as being directed at targeting inflation and exchange rate stability via a five-phase policy mix using sterilization bonds and reserve requirements according to macroeconomic conditions. After downgrading the loans-to-deposits ratio of 75% to the status of an indicator and given the rise in lending despite a high reserve ratio, the quantity-driven approach to monetary policy of the PBoC faces an uncertain future.
Author: Finn Marten Körner
Publisher:
ISBN:
Category :
Languages : en
Pages : 22
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Book Description
Chinese monetary policy constitutes a marked example of a clash between theory and practice. In theory, a fixed exchange rate regime with capital mobility turns the money supply into an endogenous variable while expansionary pressure can be alleviated by the central bank by foreign currency transactions. For China, this standard view is contended by the 'compensation thesis' as proposed by Lavoie and Wang (2012) according to which the central bank maintains discretion over money supply by using alternative balance sheet instruments. In this paper we show that the People's Bank of China's (PBoC) activities can be better characterized by the 'compensation thesis' view of alternative money supply operations. In addition, we can thus characterize the PBoC's policy stance as being directed at targeting inflation and exchange rate stability via a five-phase policy mix using sterilization bonds and reserve requirements according to macroeconomic conditions. After downgrading the loans-to-deposits ratio of 75% to the status of an indicator and given the rise in lending despite a high reserve ratio, the quantity-driven approach to monetary policy of the PBoC faces an uncertain future.
Author: Douglas D Evanoff
Publisher: World Scientific
ISBN: 9813236604
Category : Business & Economics
Languages : en
Pages : 317
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Book Description
This book, Innovative Federal Policies During the Great Financial Crisis, contains discussions of unconventional monetary policies, policy changes to address systemic and payments systems risks, new macroprudential policies, the 'stretching' of the financial safety net, changes in the Fed's liquidity funding facility (the discount window), use of the Fed's balance sheet as a tool of monetary policy, and alternative means to deal with real-estate asset bubbles and potential financial instability.The 10 chapters in this book offer a unique analysis of several innovative approaches by the Federal Reserve that contributed to the stabilization of the US economy following the Great Recession. What unique policies were implemented? Toward what goal? Were they effective? Were there unintended consequences? Additionally, but less thoroughly, events in the Euro market are also discussed, and policies (and their impact) of the ECB are critiqued.Based on papers presented at the 91st Annual Conference of the Western Economic Association International Meetings in Portland, Oregon, 2016, Innovative Federal Policies During the Great Financial Crisis adds significantly to the debate over why innovative or unconventional policies were needed, how they were implemented and how effective they were.
Author: Conglai Fan
Publisher:
ISBN: 9781003540274
Category : Business & Economics
Languages : en
Pages : 0
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Book Description
"By applying modern monetary theories to China's reality, this book reviews the development practice of China's monetary policy and discusses the transitional goals of China's monetary policy in the new stage of high-quality economic development. The book focuses on the formation mechanism of China's inflation from the perspective of learning expectations, adaptive learning and dual labour market structure. It examines the monetary policy objectives of inflation management in an open economy, analyses the causes of China's price fluctuations from a global perspective, and discusses the optimal policy space of the optimal RME exchange rate regime and the synergy between finance and business cycles. The author proposes a policy framework of capital regulation to deal with financial shocks and provides monetary policy options to deal with financial and business cycles. This work helps readers to understand the internal theoretical logic of the target transition of China's monetary policy framework, and points out that China's monetary policy reforms are driven by the economic contradictions it faces at different stages of development. The title will provide references for scholars, students and policymakers interested in China's monetary policy, and provide experience and guidance for other developing countries to set their monetary policy targets and promote the transition of the monetary system"--
Author: FAN. CONGLAI
Publisher: Routledge
ISBN: 9781032885773
Category : Business & Economics
Languages : en
Pages : 0
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Book Description
By applying modern monetary theories to China's reality, this book reviews the development practice of China's monetary policy and discusses the transitional goals of China's monetary policy in the new stage of high-quality economic development. The book focuses on the formation mechanism of China's inflation from the perspective of learning expectations, adaptive learning and dual labour market structure. It examines the monetary policy objectives of inflation management in an open economy, analyses the causes of China's price fluctuations from a global perspective, and discusses the optimal policy space of the optimal RME exchange rate regime and the synergy between finance and business cycles. The author proposes a policy framework of capital regulation to deal with financial shocks and provides monetary policy options to deal with financial and business cycles. This work helps readers to understand the internal theoretical logic of the target transition of China's monetary policy framework, and points out that China's monetary policy reforms are driven by the economic contradictions it faces at different stages of development. The title will provide references for scholars, students and policymakers interested in China's monetary policy, and provide experience and guidance for other developing countries to set their monetary policy targets and promote the transition of the monetary system.
Author: Florin Bötschi
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This thesis assesses the degree of financial repression existing in China's monetary policy and particularly focuses on the application of interest rates. The employment of Chinese monetary policy tools is reviewed on a theoretical evaluation of financial repression and compared to practices in the US, the Eurozone and Russia. The sub- sequent analysis reveals that elements of financial repression are indeed present in China: Deposit interest rates are administratively capped by the central government on a level adequate to fuel cheap funding for loans and promote growth. Despite being set by the central government, however, it is found that interest rates in general lack of efficiency due to insufficient market forces and consequently are a monetary instrument of subsequent importance relative to reserve requirements and direct lending. Notwithstanding their presence, accusing repressive polices of being entirely detrimental to economic growth and financial development would be inappropriate. Firstly so because China's unprecedented growth was partially facilitated by direct lending and secondly because reserve requirements are a suitable instrument to steer the money supply in absence of sufficient price mechanisms. Having acknowledged the limitations of these practices as China's economy becomes more sophisticated, however, the central government embarked on a reform process to implement a market-based model for the financial system.
Author: Hui Zhou
Publisher:
ISBN: 9783662440940
Category : Financial risk management
Languages : en
Pages :
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Book Description
Author: Agnès Bénassy-Quéré
Publisher:
ISBN: 0190912103
Category : Business & Economics
Languages : en
Pages : 705
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Book Description
Concepts -- Issues -- Interdependence -- Fiscal policy -- Monetary policy -- Financial stability -- International financial integration and foreign-exchange policy -- Tax policy -- Growth policies
Author: Paul de Grauwe
Publisher: Wiley-Blackwell
ISBN: 9780631180166
Category : Business & Economics
Languages : en
Pages : 273
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Book Description
"Exchange Rate Theory presents a novel and elegant theory to explain the excessive variability of foreign exchange rate returns. The theory is novel in the sense that it focuses on interaction between market agents as the primary source of the variability in those speculative prices. It is shown that simple interactions between market participants using different information is sufficient to generate deterministic chaos." "In the first part of this book the authors survey existing exchange rate theories and ask whether these theories are useful in explaining actual exchange rate movements. They demonstrate that the 1970s were characterized by the belief that exchange rates could be understood by an analysis of the fundamentals (inflation rates, interest rates and monetary policy). Subsequently, this belief has all but disappeared but researchers have been content to analyze the statistical properties of exchange rates, abandoning the theory and the models." "The second part of the book uses chaos theory to construct an innovative framework for the understanding of exchange markets. These models, which integrate fundamentalism and chartism, create complex exchange rate movements which appear to be random. These models are used to explain several of the anomalies observed in exchange rate markets and to evaluate the possibility of exchange rate prediction."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved
Author: Fan Conglai
Publisher: Taylor & Francis
ISBN: 1040222331
Category : Business & Economics
Languages : en
Pages : 271
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Book Description
By applying modern monetary theories to China’s reality, this book reviews the development practice of China’s monetary policy and discusses the transitional goals of China’s monetary policy in the new stage of high-quality economic development. The book focuses on the formation mechanism of China’s inflation from the perspective of learning expectations, adaptive learning and dual labor market structure. It examines the monetary policy objectives of inflation management in an open economy, analyzes the causes of China’s price fluctuations from a global perspective and discusses the optimal policy space of the optimal RME exchange rate regime and the synergy between finance and business cycles. The author proposes a policy framework of capital regulation to deal with financial shocks and provides monetary policy options to deal with financial and business cycles. This work helps readers to understand the internal theoretical logic of the target transition of China’s monetary policy framework and points out that China’s monetary policy reforms are driven by the economic contradictions it faces at different stages of development. The title will provide references for scholars, students and policymakers interested in China’s monetary policy and provide experience and guidance for other developing countries to set their monetary policy targets and promote the transition of the monetary system.
Author: International Monetary Fund
Publisher:
ISBN: 9781484338865
Category :
Languages : en
Pages : 32
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Book Description
Over the past dozen years or so, China has faced major challenges in the conduct of monetary policy. In responding to these challenges, China's monetary policy has successfully maintained stability in economic growth and price levels by focusing on controlling inflation while also considering reform and transformation needs. Meanwhile, major progress has been achieved in the development, reform, and transformation of the financial regulation mechanisms, substantial advances have been made in the reform of interest rate and exchange rate formation mechanisms, and the macro-prudential policy framework has been further refined. In an extremely complex and changing international environment, hard-won regulation and control results have been achieved, and a wealth of experience has been accumulated regarding the development of monetary policy tools and mechanisms for economies in transition. This Per Jacobsson Lecture reflects on these practices and experiences, with major significance for the development of theory and empirical practice in the future.
