China's Monetary Policy Shift: Interest Rates Key to Economic Stability.
The study looked at how China's monetary policies affect welfare using a new Keynesian model. They found that adjusting interest rates can help stabilize prices, but shouldn't be used to influence economic growth. Stable interest rates don't have much impact on welfare. Changes in money supply have a bigger effect than interest rate fluctuations. Therefore, it's suggested that monetary policies focus on interest rates rather than money supply to improve welfare.