Wu, Huabin; Xu, Zhenyang; Yan, Ping - In: China economic quarterly international : CEQI 2 (2022) 2, pp. 151-163
the model features SOE monopoly and financial repression. We find that under current situation, fiscal policy should play … a bigger role in stabilizing output, while monetary policy ought to pay more attention to combatting inflation. Although … second-best policy, in that it promotes SOE's output via cheap credit when SOEs behave like monopolists. This offsets the …