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Journal Article (Refereed)
January 2007

The Real Effects of Monetary Policy in China:An Empirical Analysis

David, D & Liu, J 2007, 'The Real Effects of Monetary Policy in China:An Empirical Analysis', -China Economic Review (2* Journal, ABS), 18(1), pp.87-111.


This paper examines whether institutional changes have affected the interaction between the real economy and monetary policy in China. We find evidence that structural changes in the financial and real sectors over the period of our study did influence the way in which monetary policy affected the real economy. There were an increasing influence of interest rates on output over 1984 to 1997 and non-state owned enterprises were increasingly reacting to monetary policy changes, suggesting that banking sector reforms were having effects, despite the fact that most credit was allocated to the loss-making State sector.

JEL classification: E52; P24

Keywords: Monetary policy; Output; Structural change


SEEK Members

External Authors

Dickinson David

Publication Details

Journal Name
-China Economic Review (2* Journal, ABS)