Fernald, John G.; Spiegel, Mark M.; Swanson, Eric T. - In: Journal of International Money and Finance 49 (2014) PA, pp. 83-103
We use a broad set of Chinese economic indicators and a dynamic factor model framework to estimate Chinese economic activity and inflation as latent variables. We incorporate these latent variables into a factor-augmented vector autoregression (FAVAR) to estimate the effects of Chinese monetary...
