Money demand in China: a disaggregate approach
Article Abstract:
Unconstrained monetary control in China created a favorable environment for dynamic economic growth. The consequent rise in market yields led to heightened currency demand. However, this situation also generated more personal savings, inducing financial sector woes. Thus, to explain the monetary expansion that has characterized the Chinese economy since 1978, performance of M2 elements must be studied in detail using an unconventional disaggregate method. Earlier attempts to produce positive results using a money-demand prototype failed.
Publication Name: Journal of Comparative Economics
Subject: Economics
ISSN: 0147-5967
Year: 1998
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Economic fluctuation, macro control, and monetary policy in the transitional Chinese economy
Article Abstract:
The People's Bank of China (PBC) correctly anticipates economic fluctuations by using money aggregates instead of bank credits since money aggregates have been performing better than bank credits. Indirect administration of money aggregates rather than relying on bank-controlled bank credits is also a good decision. Further, the Central Bank effectively manages macroeconomic growth rates and levels through the steady interaction of financial variables and economic activity.
Publication Name: Journal of Comparative Economics
Subject: Economics
ISSN: 0147-5967
Year: 1997
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