Title :
Existence of the cost channel of China´s monetary transmission
Author :
Qiang, Tian Jian ; Xin, Liu Zhi
Author_Institution :
Sch. of Econ. & Manage., Beihang Univ., Beijing, China
Abstract :
This paper empirically assesses the existence of the cost channel of China´s monetary transmission within a New Keynesian Phillips Curve framework. We estimate a GMM model and find that the cost channel significantly exists in china. The bank system can not filter the fluctuation of the benchmark interest rate but amplify it. To reinforce the effect of monetary policy farthest, the central bank should keep on perfecting the intermediate target system of monetary policy and dredging the transmission channel using quantity and price instruments synthetically.
Keywords :
banking; costing; economic indicators; pricing; China monetary transmission channel; GMM model; New Keynesian Phillips Curve framework; bank system; benchmark interest rate; cost channel; fluctuation filter; intermediate target system; monetary policy; price instrument; Channel estimation; Economic indicators; Electric shock; Macroeconomics; Reactive power; Time series analysis; Time varying systems; GMM; NKPC; The Cost Channel;
Conference_Titel :
Computing, Control and Industrial Engineering (CCIE), 2011 IEEE 2nd International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-9599-3
DOI :
10.1109/CCIENG.2011.6008025
