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Macroeconomic Effects of China's Financial Policies

Chen, Kaiji - 2018

The Chinese economy has undergone three major phases: the 1978-1997 period marked as the SOE-led economy, the 1998-2015 phase as the investment-driven economy, and the new normal economy since 2016. All three economies have been shaped by the government's financial policies, defined as a set of...

Persistent link: https://www.econbiz.de/10012480873

Stock-bond Return Correlation, Bond Risk Premium Fundamental, and Fiscal-monetary Policy Regime

Li, Erica X.N. - 2020

negative correlation between consumption and inflation from 1971 to 2000 and the positive one after 2000, and (3) the …

Persistent link: https://www.econbiz.de/10012481165

Does Policy Communication During Covid Work?

Coibion, Olivier - 2020

Using a large-scale survey of U.S. households during the Covid-19 pandemic, we study how new information about fiscal and monetary policy responses to the crisis affects households' expectations. We provide random subsets of participants in the Nielsen Homescan panel with different combinations...

Persistent link: https://www.econbiz.de/10012481579

The Nexus of Monetary Policy and Shadow Banking in China

Chen, Kaiji - 2017

We estimate the quantity-based monetary policy system in China. We argue that China's rising shadow banking was inextricably linked to banks' balance-sheet risk and hampered the effectiveness of monetary policy on the banking system during the 2009-2015 period of monetary policy contractions. By...

Persistent link: https://www.econbiz.de/10012455304

Impacts of Monetary Stimulus on Credit Allocation and Macroeconomy : Evidence from China

Chen, Kaiji - 2016

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 regime to combat the impact of the 2008...

Persistent link: https://www.econbiz.de/10012456030

What We Learn from China's Rising Shadow Banking : Exploring the Nexus of Monetary Tightening and Banks' Role in Entrusted Lending

Chen, Kaiji - 2016

We argue that China's rising shadow banking was inextricably linked to potential balance-sheet risks in the banking system. We substantiate this argument with three didactic findings: (1) commercial banks in general were prone to engage in channeling risky entrusted loans; (2) shadow banking...

Persistent link: https://www.econbiz.de/10012456782

Innocent Bystanders? Monetary Policy and Inequality in the U.S

Coibion, Olivier - 2012

We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the … income, consumption and total expenditures. Furthermore, monetary shocks can account for a significant component of the … historical cyclical variation in income and consumption inequality. Using detailed micro-level data on income and consumption, we …

Persistent link: https://www.econbiz.de/10012460490

Are the Effects of Monetary Policy Shocks Big or Small?

Coibion, Olivier - 2011

This paper studies the small estimated effects of monetary policy shocks from standard VAR's versus the large effects from the Romer and Romer (2004) approach. The differences are driven by three factors: the different contractionary impetus, the period of reserves targeting and lag length...

Persistent link: https://www.econbiz.de/10012461625

Why Are Target Interest Rate Changes So Persistent?

Coibion, Olivier - 2011

While the degree of policy inertia in central banks' reaction functions is a central ingredient in theoretical and empirical monetary economics, the source of the observed policy inertia in the U.S. is controversial, with tests of competing hypotheses such as interest-smoothing and...

Persistent link: https://www.econbiz.de/10012461950

Understanding Markov-Switching Rational Expectations Models

Farmer, Roger E.A. - 2009

We develop a set of necessary and sufficient conditions for equilibria to be determinate in a class of forward-looking Markov-switching rational expectations models and we develop an algorithm to check these conditions in practice. We use three examples, based on the new-Keynesian model of...

Persistent link: https://www.econbiz.de/10012463937