This paper studies the wealth channel in China. Using the structural vector autoregression method, we find that a … loosening of China's monetary policy indeed leads to higher asset prices, which in turn are linked to household consumption …. However, the importance of the wealth channel as a part of the monetary policy transmission mechanism in China is still …

This paper presents empirical evidence of the role of financial conditions in China's business cycle. We estimate a … Bayesian-VAR for the Chinese economy, incorporating a financial conditions index for China that captures movements across a … China's business cycle. Using conditional scenarios, we examine the role of credit in shaping economic outcomes in China …