This working paper was written by Soyoung Kim (Seoul National University), Seri Shim (Bank of Korea) and Hongyi Chen (Hong Kong Institute for Monetary and Financial Research).This paper investigates the effects and conduct of macroprudential policies in China in comparison with those of monetary...

Estimating heterogeneous panel VAR models, this paper empirically investigates how effective macroprudential policy is in curbing mortgage loans and house prices. The sign restriction approach is used to identify two fundamental policy shocks - monetary policy and macroprudential policy shocks....