## China’s Monetary Policy Communication: Frameworks, Impact, and Recommendations

_IMF Working Papers, November 16, 2018_

## Source details

**Canonical URL:** [China’s Monetary Policy Communication: Frameworks, Impact, and Recommendations](https://www.imf.org/en/publications/wp/issues/2018/11/17/chinas-monetary-policy-communication-frameworks-impact-and-recommendations-46375)

## Other formats

- [Markdown version](/en/publications/wp/issues/2018/11/17/chinas-monetary-policy-communication-frameworks-impact-and-recommendations-46375/index.md)
- [Structured JSON version](/en/publications/wp/issues/2018/11/17/chinas-monetary-policy-communication-frameworks-impact-and-recommendations-46375/index.json)
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## Bibliographic details
- Authors: Michael McMahon, Alfred Schipke, Xiang Li
- Published: November 16, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484385647.001

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### Overview and purpose
- Financial markets are eager for any signal of monetary policy from the People’s Bank of China (PBC).
- The importance of effective monetary policy communication will only increase as China continues to liberalize its financial system and open its economy.
- The paper discusses China’s unique institutional setup and empirically analyzes the impact on financial markets of the PBC’s main communication channels, including a novel communication channel.
- The results suggest significant progress but that PBC communication is still evolving toward the level of other major economies.
- The paper recommends both medium-term policy reforms and reforms that can be adopted quickly.

### Authors and publication metadata
- Authors: Michael McMahon, Alfred Schipke, Xiang Li
- Publication date: November 16, 2018
- Series: IMF Working Papers
- Working Paper No.: 2018/244
- Volume: 2018
- Pages: 32
- DOI: https://doi.org/10.5089/9781484385647.001
- Stock No.: WPIEA2018244
- ISBN: 9781484385647
- ISSN: 1018-5941

### Key subjects and keywords
- Subjects: Banking; Central bank policy rate; Central banks; Communications in revenue administration; Financial services; Market interest rates; Monetary policy; Monetary policy communication; Monetary policy frameworks; Open market operations; Revenue administration
- Keywords: Central Bank; Central bank policy rate; china's monetary policy communication; China's monetary policy communication; Communication; Communications in revenue administration; Financial Markets; Global; Market interest rates; Monetary Policy; Monetary policy communication; Monetary policy frameworks; Monetary Policy Transmission; OMO rate; Open market operations; PBC budget; PBC communication; PBC communications; PBC forecasting resource; PBC governor; PBC interest rate change; PBC official; People’s Bank of China; reverse repo; WP

### Empirical findings (as reported)
- The paper empirically analyzes the impact on financial markets of the PBC’s main communication channels, including a novel communication channel.
- The results indicate:
  - Significant progress in PBC communication to date.
  - PBC communication remains in evolution and has not yet reached the level of communication of other major economies.

### Policy recommendations
- The paper recommends:
  - Medium-term policy reforms to further develop PBC communication frameworks.
  - Reforms that can be adopted quickly to improve transparency and signaling in the near term.

### Access and formats
- The paper is available on the IMF eLibrary in multiple formats and is also available in 中文.
- The landing page provides options to Download PDF, Order a Print Copy, Create Citation, and Share.

*IMF Working Paper No. 2018/244 (Michael McMahon, Alfred Schipke, Xiang Li), November 16, 2018.*

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## Content in this bundle

- **Box 1. Communication Terminology**
  - [Box 1. Communication Terminology (Markdown version)](/-/media/files/publications/wp/2018/wp18244.pdf.md){rel="alternate" type="text/markdown"}
  - [Box 1. Communication Terminology (PDF)](/-/media/files/publications/wp/2018/wp18244.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2018/11/17/chinas-monetary-policy-communication-frameworks-impact-and-recommendations-46375_