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
The emergence of Yu＇E Bao and the like provides Chinese investors with a new and flexible investment option. Such new investment instrument forces up the cost of capital of local banks and also takes away the market ...The emergence of Yu＇E Bao and the like provides Chinese investors with a new and flexible investment option. Such new investment instrument forces up the cost of capital of local banks and also takes away the market share from them. Yu＇E Bao has allocated most investments in inter-bank money market due to the liquidity concerns. This study investigates Yu＇E Bao＇s portfolio allocation and potential risk, and also provides policy implications for regulators. The research findings suggest that regulators should issue more provisions to further regulate the operation of online investment products and keep the liquidity risk under control, i.e. require money market funds to hold more capital in reserve on a gradual basis. By examining the case of Yu＇E Bao, a new online investment product in China, this study sheds light on the recent financial development and reform of China.展开更多
The great expansionary policies undertaken by the main central banks of the world since the outbreak of the world financial and economic crisis in 2008 did not produce a satisfying recovery of the real economy especia...The great expansionary policies undertaken by the main central banks of the world since the outbreak of the world financial and economic crisis in 2008 did not produce a satisfying recovery of the real economy especially in Europe. In order to identify the causes of this failure, it became necessary to deepen the analysis of the transmission mechanism of monetary policy, and to investigate if there are some obstacles hampering the functioning of this mechanism. The scope of the present papers to analyze some short comings of the transmission mechanism of the monetary policy is conducted by the European Central Bank （ECB） in the euro area. After a close examination of the relationship between the monetary base and the supply of money, transmission through the credit channel and through the interestrate channel will be taken into consideration. The analysis shows that loans to nonfinancial corporations were not affected by the huge amount of liquidity created by the ECB, while a very slow growth is shown by loans to private households during the whole period.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The emergence of Yu＇E Bao and the like provides Chinese investors with a new and flexible investment option. Such new investment instrument forces up the cost of capital of local banks and also takes away the market share from them. Yu＇E Bao has allocated most investments in inter-bank money market due to the liquidity concerns. This study investigates Yu＇E Bao＇s portfolio allocation and potential risk, and also provides policy implications for regulators. The research findings suggest that regulators should issue more provisions to further regulate the operation of online investment products and keep the liquidity risk under control, i.e. require money market funds to hold more capital in reserve on a gradual basis. By examining the case of Yu＇E Bao, a new online investment product in China, this study sheds light on the recent financial development and reform of China.
文摘The great expansionary policies undertaken by the main central banks of the world since the outbreak of the world financial and economic crisis in 2008 did not produce a satisfying recovery of the real economy especially in Europe. In order to identify the causes of this failure, it became necessary to deepen the analysis of the transmission mechanism of monetary policy, and to investigate if there are some obstacles hampering the functioning of this mechanism. The scope of the present papers to analyze some short comings of the transmission mechanism of the monetary policy is conducted by the European Central Bank （ECB） in the euro area. After a close examination of the relationship between the monetary base and the supply of money, transmission through the credit channel and through the interestrate channel will be taken into consideration. The analysis shows that loans to nonfinancial corporations were not affected by the huge amount of liquidity created by the ECB, while a very slow growth is shown by loans to private households during the whole period.
