St Andrews Research Repository

St Andrews University Home
View Item 
  •   St Andrews Research Repository
  • University of St Andrews Research
  • University of St Andrews Research
  • University of St Andrews Research
  • View Item
  •   St Andrews Research Repository
  • University of St Andrews Research
  • University of St Andrews Research
  • University of St Andrews Research
  • View Item
  •   St Andrews Research Repository
  • University of St Andrews Research
  • University of St Andrews Research
  • University of St Andrews Research
  • View Item
  • Login
JavaScript is disabled for your browser. Some features of this site may not work without it.

Examining monetary policy transmission in the People's Republic of China – structural change models with a Monetary Policy Index

Thumbnail
View/Open
Egan_2016_ADR_MonetaryPolicyTransmission_CC.pdf (762.1Kb)
Date
03/2016
Author
Egan, Paul Gerard
Leddin, Anthony J.
Keywords
IS curve
Kalman filter
Monetary policy
People's Bank of China
Structural change
HB Economic Theory
Metadata
Show full item record
Altmetrics Handle Statistics
Altmetrics DOI Statistics
Abstract
This paper estimates augmented versions of the Investment–Saving curve for the People's Republic of China in an attempt to examine the relationship between monetary policy and the real economy. It endeavors to account for any structural break, nonlinearity, or asymmetry in the transmission process by estimating a breakpoint model and a Markov switching model. The Investment–Saving curve equations are estimated using a Monetary Policy Index, which has been calculated using the Kalman filter. This index will account for the various monetary policy tools, both quantitative and qualitative, that the People's Bank of China has used over the period 1991–2014. The results of this paper suggest that monetary policy has an asymmetric affect depending on the level of output in relation to potential, and that the People's Republic of China's exchange rate policy has restricted the effectiveness of the People's Bank of China's monetary policy response.
Citation
Egan , P G & Leddin , A J 2016 , ' Examining monetary policy transmission in the People's Republic of China – structural change models with a Monetary Policy Index ' , Asian Development Review , vol. 33 , no. 1 , pp. 74-110 . https://doi.org/10.1162/ADEV_a_00062
Publication
Asian Development Review
Status
Peer reviewed
DOI
https://doi.org/10.1162/ADEV_a_00062
ISSN
0116-1105
Type
Journal article
Rights
© 2016 Asian Development Bank and Asian Development Bank Institute. This is an Open Access article. Articles in Asian Development Review are published under a CC BY 3.0 IGO license.
Description
The financial support of the Irish Research Council and The Paul Tansey Economics Postgraduate Research Scholarship is greatly appreciated.
Collections
  • Economics & Finance Research
  • University of St Andrews Research
URI
http://hdl.handle.net/10023/8576

Items in the St Andrews Research Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

Advanced Search

Browse

All of RepositoryCommunities & CollectionsBy Issue DateNamesTitlesSubjectsClassificationTypeFunderThis CollectionBy Issue DateNamesTitlesSubjectsClassificationTypeFunder

My Account

Login

Open Access

To find out how you can benefit from open access to research, see our library web pages and Open Access blog. For open access help contact: openaccess@st-andrews.ac.uk.

Accessibility

Read our Accessibility statement.

How to submit research papers

The full text of research papers can be submitted to the repository via Pure, the University's research information system. For help see our guide: How to deposit in Pure.

Electronic thesis deposit

Help with deposit.

Repository help

For repository help contact: Digital-Repository@st-andrews.ac.uk.

Give Feedback

Cookie policy

This site may use cookies. Please see Terms and Conditions.

Usage statistics

COUNTER-compliant statistics on downloads from the repository are available from the IRUS-UK Service. Contact us for information.

© University of St Andrews Library

University of St Andrews is a charity registered in Scotland, No SC013532.

  • Facebook
  • Twitter