Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/244297 
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 2020-16
Publisher: 
Federal Reserve Bank of Atlanta, Atlanta, GA
Abstract: 
We study the impacts of the 2009 monetary stimulus and its interaction with infrastructure spending on credit allocation. We develop a two-stage estimation approach and apply it to China's loanlevel data that covers all sectors in the economy. We find that except for the manufacturing sector, monetary stimulus itself did not favor state-owned enterprises (SOEs) over non-SOEs in credit access. Infrastructure investment driven by nonmonetary factors, however, enhanced the monetary transmission to bank credit allocated to local government financing vehicles in infrastructure and at the same time weakened the impacts of monetary stimulus on bank credit to non-SOEs in sectors other than infrastructure.
Subjects: 
infrastructure investment
monetary policy transmission
fiscal shocks
policy interaction
credit reallocation
LGFVs
JEL: 
E5
E02
C3
C13
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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