Real business cycles in China are different than in many other countries, including consumption being more volatile than output and uncorrelated with investment. To study whether Chinese institutions can account for these features, we expand the standard real business cycle model with private...

Despite much empirical evidence indicating that non-resident housing investment increases house price and rent in small open economies, the effects of non-resident housing investment on consumption and welfare across different types of resident households are unclear. This paper studies the...

This paper studies a joint monetary and fiscal policy response to an increase in public infrastructure investment in emerging market economies. I extend the neoclassical growth model to a two-sector open economy setting, and introduce heterogeneous agents to examine the distributional effects of...

This paper compares the effects of macroprudential policy, fiscal policy, and two liberalization policies on house prices and bank balance sheets and examines the welfare and distributional implications of each policy. Three prominent features of the Chinese economy, including monopolistically...

We construct a novel Exchange Rate Stance Index (ERSI) to measure the magnitude of oral interventions that talk down the Australian dollar - a preference for a weaker domestic currency expressed by the Reserve Bank of Australia (RBA) through public speeches and monetary policy statements in...

This paper proposes a novel financing scheme, reserve financing, for government infrastructure investment in China. A two-sector open economy model explores the consequences and policy implications of a surge in infrastructure investment financed by international reserves. The results show that...