Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212754 
Year of Publication: 
2012
Series/Report no.: 
BOFIT Discussion Papers No. 30/2012
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
This paper evaluates various financial system reform initiatives and proposals in China in a DSGE modelling setting. The key reform steps analysed include phasing out benchmark interest rates, deepening the direct finance market, reducing government's quantity-based intervention on financial institutions. Our counterfactual model simulation results suggest that the reforms will be beneficial only, if Chinese monetary policy continues to rely on quantity-based interventions on financial institutions or tightens the interest rate rule.
Subjects: 
DSGE model
financial sector reform
monetary policy
China
JEL: 
E42
E52
E58
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-761-0
Document Type: 
Working Paper

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