This paper attempts to investigate the time-varying causal dynamics between China's money and output by using a Markov switching causality approach. Unlike the pre-specified break points and rolling-window methods, the Markov switching causality approach can capture the time-varying causality...

Considering that monetary policy instability may cause indeterminacy of the macroeconomic equilibrium, this paper derives the boundary condition between determinacy and indeterminacy in a small open economy DSGE model, and then uses this model to investigate China's monetary policy and...