How should we think about the determination of interest rates in China after interest rate liberalisation? Would effective deposit rates, lending rates and bond yields move higher or lower? We argue that interest rates in a liberalised environment would need to be anchored by the conduct of...

How can we fit different monetary transmission channels together to understand the effect of China¡¯s monetary policy? This paper focuses on China¡¯s monetary conditions and aggregate demand in terms of the monetary conditions index (MCI), which has been widely used as an important indicator...