We develop a new empirical framework to identify and estimate the effects of monetary stimulus on the real economy. The … framework is applied to the Chinese economy when monetary policy in normal times was switched to an extraordinarily expansionary … high as a 4% increase of real GDP growth rate by the end of 2009. Monetary transmission to the real economy was through …

What are the economic effects of an interest rate cut when an economy is in the midst of a financial crisis? Under what … ffects? We answer these questions in a general class of open economy models, where a financial crisis is modeled as a time … the traded good sector and in adjusting the rate at which that output can be used in other parts of the economy, then a …