Environmental Science
8 years ago

Monetary policy in China: Money supply influences economy more than interest rates.

Huadong jingji guanli
On the Empirical Studies of the Quantitative Effect of the Monetary Policy in China
Tang Zhi-xiang

Paper Summary

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The study looked at how monetary policy affects China's economy from 1994 to 2004. They used math methods to analyze the relationship between money supply, interest rates, and GDP. The interest rate didn't have a big impact on the economy, but different levels of money supply did affect GDP in different ways. The study suggests ways to make China's monetary policy more effective.