Monetary Policy Efficiency in China

Author

LI, Liang ; WANG, Xiangning ; HOU, Bo

Author_Institution

Dept. of Stat. & Finance, Univ. of Sci. & Technol. of China, Hefei, China

fYear

2010

fDate

7-9 Nov. 2010

Firstpage

1

Lastpage

4

Abstract

By using the stochastic frontier analysis, this paper analyses the efficiency of monetary policy in China. According to monetary transmission theory, central bank could influence money aggregate, production level and price level by employing monetary instruments. Using the monthly data from September 2002 to October 2009, we investigate the output efficiency of monetary policy instruments on money aggregate and real gross domestic production. We find that monetary policy in China is efficient because it can stimulate economy effectively; China Central Bank is rather independent; financial innovation and economy cycle are the two factors which would affect the efficiency of monetary policy.

Keywords

financial management; government policies; China central bank; China monetary policy efficiency; economy cycle; financial innovation; gross domestic production; monetary policy instrument; monetary transmission theory; money aggregate; price level; production level; stochastic frontier analysis; Aggregates; Biological system modeling; Economic indicators; Instruments; Production; Technological innovation;

fLanguage

English

Publisher

ieee

Conference_Titel

E-Product E-Service and E-Entertainment (ICEEE), 2010 International Conference on

Conference_Location

Henan

Print_ISBN

978-1-4244-7159-1

Type

conf

DOI

10.1109/ICEEE.2010.5661142

Filename

5661142