The impact of the People's Bank of China monetary policy on the dynamics of the national financial market
The modern central bank plays a crucial role in the economy of any country, utilizing its own set of monetary policy tools, determined by the officially adopted operational framework. The People's Bank of China, unlike most central banks around the world, adheres to a monetary targeting regime and a managed exchange rate regime. The use of a wide range of monetary policy instruments by the People's Bank of China, along with a flexible approach to developing strategies for influencing the national financial market and the real sector of the economy, indicates the effectiveness of its operations. The aim of this study was to determine the extent of the impact of monetary policy on the dynamics of various segments of China's financial market. The selection of parameters for analysis was based on the key points emphasized in the official reports of the People's Bank of China. The data sources were the People's Bank of China, the National Bureau of Statistics of China, and some other official sources. The research method involved modelling with the help of the vector autoregressions and constructing impulse response functions for indicators of individual financial market segments in response to shocks from changes in monetary policy instruments. The results provided empirical evidence of the stronger influence of the People's Bank of China on the dynamics of the financial market using short-term and mid-term interest rates. The authors declare no conflicts of interests.
Keywords
monetary policy,
central bank,
People's Bank of China,
segments of financial marketAuthors
| Bekareva Svetlana V. | Novosibirsk State University | s.bekareva@g.nsu.ru |
| Ren Jie | Novosibirsk State University | t.zhen@g.nsu.ru |
Всего: 2
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