{
  "title": "Monetary Policy Transmission and Policy Coordination in China",
  "publication": "IMF Working Papers, April 29, 2022",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2022/04/29/monetary-policy-transmission-and-policy-coordination-in-china-517443",
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  "summary": "We study the transmission of conventional monetary policy in China, focusing on the interaction between monetary and fiscal policy given the unique institutional set-up for macroeconomic policy making.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Title: Monetary Policy Transmission and Policy Coordination in China\n- Authors: Sonali Das, Wenting Song\n- Date: April 29, 2022\n- Series: Working Paper No. 2022/074\n- Summary:\n  - The paper studies the transmission of conventional monetary policy in China with a focus on the interaction between monetary and fiscal policy given China’s unique institutional set-up for macroeconomic policy making.\n  - Results indicate some progress but continued difficulties in the transmission of monetary policy.\n  - Evidence of monetary policy pass-through to interest rates is found.\n  - The impact of monetary policy measures that are not coordinated with fiscal policy is significantly weaker than that of coordinated measures.\n  - The findings suggest the need for further improvements to the interest-rate based framework."
    },
    {
      "heading": "Key Findings",
      "content": "- Monetary policy pass-through:\n  - There is evidence of monetary policy pass-through to interest rates.\n- Coordination effects:\n  - Monetary policy measures not coordinated with fiscal policy have a significantly weaker impact than coordinated measures.\n- Overall assessment:\n  - Some progress in transmission has been achieved, but notable difficulties remain."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- Need for enhanced coordination:\n  - Strengthen coordination between monetary and fiscal authorities to improve the effectiveness of monetary measures.\n- Framework adjustments:\n  - Further improvements to the interest-rate based framework are suggested to bolster transmission effectiveness."
    },
    {
      "heading": "Subjects and Keywords",
      "content": "- Subject: Central bank policy rate, Deposit rates, Financial services, Fiscal policy, Monetary policy, Monetary policy instruments, Yield curve\n- Keywords: Central bank policy rate, China, Deposit rates, fiscal policy measure, monetary fiscal coordination, monetary policy, Monetary policy instruments, monetary policy measure, monetary policy pass-through, monetary policy shock, monetary policy transmission, pass-through to interest rates, textual analysis, Yield curve\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2022/04/29/monetary-policy-transmission-and-policy-coordination-in-china-517443"
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    "Authors: Sonali Das, Wenting Song",
    "Published: April 29, 2022",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400206757.001",
    "Title: Monetary Policy Transmission and Policy Coordination in China",
    "Authors: Sonali Das, Wenting Song",
    "Date: April 29, 2022",
    "Series: Working Paper No. 2022/074",
    "Summary:",
    "Monetary policy pass-through:",
    "Coordination effects:",
    "Overall assessment:",
    "Need for enhanced coordination:",
    "Framework adjustments:",
    "Subject: Central bank policy rate, Deposit rates, Financial services, Fiscal policy, Monetary policy, Monetary policy instruments, Yield curve",
    "Keywords: Central bank policy rate, China, Deposit rates, fiscal policy measure, monetary fiscal coordination, monetary policy, Monetary policy instruments, monetary policy measure, monetary policy pass-through, monetary policy shock, monetary policy transmission, pass-through to interest rates, textual analysis, Yield curve",
    "**Working Paper**"
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