Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/53766
Authors: 
Bailliu, Jeannine
Blagrave, Patrick
Year of Publication: 
2010
Series/Report no.: 
Bank of Canada Working Paper 2010,17
Abstract: 
To better understand the dynamics of the Chinese economy and its interaction with the global economy, the authors incorporate China into an existing model for the G-3 economies (i.e., the United States, the euro area, and Japan), paying particular attention to modelling the exchange rate and monetary policy in China. Their findings suggest that the Chinese economy adjusts more slowly to shocks, compared to the large advanced economies, because monetary policy is less effective and the real exchange rate more persistent. In addition, the authors' model underscores the importance of spillovers from China to the G-3 economies, and vice versa, thus highlighting the need to analyze the Chinese economy in a global context.
Subjects: 
Economic models
international topics
business fluctuations and cycles
exchange rate regimes
JEL: 
E32
E52
F41
Document Type: 
Working Paper

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