Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212812
Authors: 
Pang, Ke
Siklos, Pierre L.
Year of Publication: 
2015
Series/Report no.: 
BOFIT Discussion Papers No. 2/2015
Abstract: 
​Relying on quarterly data since 1998 we estimate, for China and the U.S., small scale econometric models that economize on the number of variables employed and yet are rich enough to provide useful insights about spillover effects between the two countries under different maintained assumptions about the exogeneity of the macroeconomic relationship between them. We conclude that inflation in China responds to credit shocks. Indeed, the monetary transmission mechanism in China resembles that of the US even if the channels through which monetary policy affects their respective economies differ. We also find that the monetary policy stance of the PBOC was helpful in mitigating the impact of the global financial crisis of 2008-9. Finally, spillovers from the US to China are significant and originate from both through the real and financial sectors of the US economy. Publication
Subjects: 
spillovers
monetary policy in China
dynamic factor models
credit
JEL: 
E58
E52
C32
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-021-7
Document Type: 
Working Paper

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