Over the past 30 years, China has achieved remarkable long-term economic growth. Using quarterly data, we study the effects of money supply on real output and inflation in China between 1993 and 2008. To this end, we ...Over the past 30 years, China has achieved remarkable long-term economic growth. Using quarterly data, we study the effects of money supply on real output and inflation in China between 1993 and 2008. To this end, we use money supply shocks afler filtering out the expected component of the money supply. Our findings provide evidence supporting the asymmetric effect of positive and negative money supply shocks on real output and inflation in China. That is, real GDP growth in China responds to negative money supply shocks but not positive money supply shocks. In addition, inflation responds to positive money supply shocks but not negative money supply shocks. We conclude that the People＇s Bank of China＇ s policy of steady monetary growth appears to be appropriate. Our study offers important policy implications for China.展开更多
This study investigates the impact of money supply on economic growth rate,inflation rate,exchange rate and real interest rate.We used a panel of 217 countries from 1960 to 2020 and four different models to address th...This study investigates the impact of money supply on economic growth rate,inflation rate,exchange rate and real interest rate.We used a panel of 217 countries from 1960 to 2020 and four different models to address these questions.The empirical results support the quantity theory of money.In addition,the study found evidence for a negative relationship between real interest rate and inflation and between money supply and real interest rate.Finally,our results show that lagged money growth rate is positively correlated with GDP growth rate but money growth rate is negatively correlated with GDP growth rate.展开更多
文摘Over the past 30 years, China has achieved remarkable long-term economic growth. Using quarterly data, we study the effects of money supply on real output and inflation in China between 1993 and 2008. To this end, we use money supply shocks afler filtering out the expected component of the money supply. Our findings provide evidence supporting the asymmetric effect of positive and negative money supply shocks on real output and inflation in China. That is, real GDP growth in China responds to negative money supply shocks but not positive money supply shocks. In addition, inflation responds to positive money supply shocks but not negative money supply shocks. We conclude that the People＇s Bank of China＇ s policy of steady monetary growth appears to be appropriate. Our study offers important policy implications for China.
文摘This study investigates the impact of money supply on economic growth rate,inflation rate,exchange rate and real interest rate.We used a panel of 217 countries from 1960 to 2020 and four different models to address these questions.The empirical results support the quantity theory of money.In addition,the study found evidence for a negative relationship between real interest rate and inflation and between money supply and real interest rate.Finally,our results show that lagged money growth rate is positively correlated with GDP growth rate but money growth rate is negatively correlated with GDP growth rate.
