Monetary Policy, Asset Prices and Consumption in China
33 Pages Posted: 7 Nov 2010
There are 3 versions of this paper
Monetary Policy, Asset Prices and Consumption in China
Monetary Policy, Asset Prices and Consumption in China
Monetary Policy, Asset Prices and Consumption in China
Date Written: October 28, 2010
Abstract
This paper studies the wealth channel in China. Using the structural vector autoregression method, we find that a loosening of China’s monetary policy indeed leads to higher asset prices, which in turn are linked to household consumption. However, the importance of the wealth channel as a part of the monetary policy transmission mechanism in China is still limited.
Keywords: China, monetary policy, asset prices
JEL Classification: E52, P24
Suggested Citation: Suggested Citation
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