China's Monetary Policy Shift Leads to Enhanced Macroeconomic Stability.
The study looked at how China's monetary policy has helped stabilize its economy over time. They found that both interest rates and other tools have been used to control economic ups and downs. While these tools have helped somewhat, they only explain a small part of the changes in output and inflation. Recently, China has been more focused on preventing inflation, but they still need to improve their policy further.