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Patrick Blagrave, Peter Elliott, Roberto Garcia-Saltos, Douglas Hostland, Douglas Laxton, and Fan Zhang. Adding China to the Global Projection Model, (USA: International Monetary Fund, 2013) accessed December 13, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

We extend the Global Projection Model (GPM) to include a separate block for China. China plays an important role in shaping global economic outcomes, given its sheer size and trade integration with other key economies, its demand for commodities, and its policies. Also, the Chinese economy has several unique features which differentiate it from the rest of emerging Asia. These features (the use of multiple monetary-policy instruments and a managed-floating exchange-rate policy) mean that a separate treatment of China allows for a better consideration of China, as well as how the rest of emerging Asia behaves.

Subject: Central bank policy rate, Exchange rates, Financial services, Foreign exchange, Inflation, Oil prices, Output gap, Prices, Production

Keywords: Central bank policy rate, China, China block, Core inflation, Demand shock, Disturbance term, Exchange rate, Exchange rates, Exchange-rate response, Global, Global Macroeconomic Model, Inflation, Inflation dynamics, Inflation equation, Inflation process, Oil prices, Output gap, Process in the China block, Reaction function, Reserve-requirement ratio, Response to the output gap, Spillovers, WP

Publication Details

  • Pages:

    33

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2013/256

  • Stock No:

    WPIEA2013256

  • ISBN:

    9781484317631

  • ISSN:

    1018-5941