This study investigated the impact of China’s monetary policy on both the money market and stock markets,assuming that non-policy variables would not respond contemporaneously to changes in policy variables.Monetary ...This study investigated the impact of China’s monetary policy on both the money market and stock markets,assuming that non-policy variables would not respond contemporaneously to changes in policy variables.Monetary policy adjustments are swiftly observed in money markets and gradually extend to the stock market.The study examined the effects of monetary policy shocks using three primary instruments:interest rate policy,reserve requirement ratio,and open market operations.Monthly data from 2007 to 2013 were analyzed using vector error correction(VEC)models.The findings suggest a likely presence of long-lasting and stable relationships among monetary policy,the money market,and stock markets.This research holds practical implications for Chinese policymakers,particularly in managing the challenges associated with fluctuation risks linked to high foreign exchange reserves,aiming to achieve autonomy in monetary policy and formulate effective monetary strategies to stimulate economic growth.展开更多
This paper examines the roadmap of interest rate liberalisation in China,including the current dual-track interest rate system and the future benchmark rate system.It provides a theoretical foundation for China to dev...This paper examines the roadmap of interest rate liberalisation in China,including the current dual-track interest rate system and the future benchmark rate system.It provides a theoretical foundation for China to develop its own benchmark interest rate.A vector autoregression model is estimated to investigate the effectiveness of Chinese market interest rates,Shanghai Interbank Offered Rate(SHIBOR),and repo rates against different factors such as market size,volatility,transmission channels of monetary policy,and term structures of interest rates.The result shows that SHIBOR affects both the market and the economy.As SHIBOR promptly reflects the changes in currency markets,we argue that it has the potential to become China’s benchmark interest rate.展开更多
文摘This study investigated the impact of China’s monetary policy on both the money market and stock markets,assuming that non-policy variables would not respond contemporaneously to changes in policy variables.Monetary policy adjustments are swiftly observed in money markets and gradually extend to the stock market.The study examined the effects of monetary policy shocks using three primary instruments:interest rate policy,reserve requirement ratio,and open market operations.Monthly data from 2007 to 2013 were analyzed using vector error correction(VEC)models.The findings suggest a likely presence of long-lasting and stable relationships among monetary policy,the money market,and stock markets.This research holds practical implications for Chinese policymakers,particularly in managing the challenges associated with fluctuation risks linked to high foreign exchange reserves,aiming to achieve autonomy in monetary policy and formulate effective monetary strategies to stimulate economic growth.
文摘This paper examines the roadmap of interest rate liberalisation in China,including the current dual-track interest rate system and the future benchmark rate system.It provides a theoretical foundation for China to develop its own benchmark interest rate.A vector autoregression model is estimated to investigate the effectiveness of Chinese market interest rates,Shanghai Interbank Offered Rate(SHIBOR),and repo rates against different factors such as market size,volatility,transmission channels of monetary policy,and term structures of interest rates.The result shows that SHIBOR affects both the market and the economy.As SHIBOR promptly reflects the changes in currency markets,we argue that it has the potential to become China’s benchmark interest rate.
