There is partial consensus that the size of money — or liquidity — in China should be large reflecting the high savings rate. Even so, with a sense of a liquidity overhang from the recent monetary expansion, many caution against expanding liquidity further lest it translate into a property...

Using a unique monthly data set over the period 2000:1–2008:12, this paper presents empirical findings on China's central bank, the People's Bank of China, from the viewpoint of its financial strength and the cost of monetary policy instruments. The results show that PBoC is constrained by the...

This paper investigates the current monetary policy regime of China’s Central Bank, the People’s Bank of China (PBoC). This is done from the specific viewpoint of PBoC financial strength and the cost of its monetary policy instruments. The result shows that PBoC is constrained by the costs...

On 11-12 May 2011, SUERF and the Belgian Financial Forum, in association with the Brussels Finance Institute and the Centre for European Policy Studies (CEPS) organized the 29th SUERF Colloquium “New Paradigms in Money and Finance?” All the papers in the present SUERF Study are based on...

On 11-12 May 2011, SUERF and the Belgian Financial Forum, in association with the Brussels Finance Institute and the Centre for European Policy Studies (CEPS) organized the 29th SUERF Colloquium "New Paradigms in Money and Finance?". All the papers in the present SUERF Study are based on...

From 2017 to 2018, to prevent the accumulating financial risks, the Chinese government used strict financial regulation and tight monetary policy to constrain the growth of the banking innovative businesses. It seems that there is no target conflict, however, the above policies resulted in a...

Today, the problem facing the United States is not whether cryptocurrencies are money or “thin air,” Iran's nuclear ambition, or COVID-19 induced recession; it is China's fast acceleration in becoming a game changer in the world order that the U.S. has dominated for more than a century....

This paper examines the monetary policy transmission mechanism in four systemically important economies. The impact of monetary policy is found to be broadly comparable for China, the US, the Eurozone, and Japan. Identifying a role for the financial sector is essential to unpacking various...

Since the early 2000s, China's central bank has been intervening actively in the foreign exchange markets to prevent sharp appreciation of the Chinese currency. At the same time, it issues central bank bills, a type of short-term central bank debt, to absorb the increase of bank reserves caused...

This paper tries to answer the long-standing question of whether money causes output. Instead of focusing on domestic monetary policy and output, we analyze U.S. monetary policy and its possible effects on real output in China. Our results indicate that the main monetary instrument in the U.S.,...