Monetary policy, asset prices and consumption in China
Koivu, Tuuli (06.11.2010)
JulkaisusarjaBOFIT Discussion Papers
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201408072125
This paper studies the wealth channel in China. Using the structural vector autoregression method, we find that a loosening of China.s monetary policy indeed leads to higher asset prices, which in turn are linked to household consumption. However, the importance of the wealth channel as a part of the monetary policy transmission mechanism in China is still limited. Keywords: China, monetary policy, asset prices JEL classification: E52, P24
Published in Economic Systems, Volume 36, Issue 2, (June 2012); 307–325 and European Central Bank. Working paper series 1240/2010.