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China's monetary policy in the context of financial crisis

  • Xi'an Jiaotong University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This paper focuses on China's monetary policy in the context of financial crisis. Empirical Mode Decomposition (EMD) method is used to extract the influencing factors of M2 and analyze their effects. We construct a VAR model to calculate the effects of monetary policy in the context of financial crisis since September 2008, and compare with that in the Asian financial crisis. The results show that the expansionary monetary policies eliminate the negative effects of prior period monetary policies and influences of the financial crisis. These policies avoid a further decline in China's economy in time. The dramatically enhanced positive effects of monetary policy in the short-run may negatively impact economy by possible inflation expectations. The proposed subsequent monetary policy should be fine-tuned for inflation.

Original languageEnglish
Title of host publicationProceedings of the 1st International Conference on Networking and Distributed Computing, ICNDC 2010
Pages290-294
Number of pages5
DOIs
StatePublished - 2010
Event1st International Conference on Networking and Distributed Computing, ICNDC 2010 - Hangzhou, Zhejiang, China
Duration: 21 Oct 201024 Oct 2010

Publication series

NameProceedings of the 1st International Conference on Networking and Distributed Computing, ICNDC 2010

Conference

Conference1st International Conference on Networking and Distributed Computing, ICNDC 2010
Country/TerritoryChina
CityHangzhou, Zhejiang
Period21/10/1024/10/10

Keywords

  • EMD analysis
  • Financial crisis
  • Monetary policy
  • VAR

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