Proceedings of the 2013 International Academic Workshop on Social Science

Empirical Analysis on Monetary Policy Efficiency in China

Authors
Wan Jieqi, Gui Cheng, Tao Xu
Corresponding Author
Wan Jieqi
Available Online October 2013.
DOI
https://doi.org/10.2991/iaw-sc.2013.66How to use a DOI?
Keywords
Monetary policy efficiency; Monetary policy targets; SFA
Abstract
As an important indicator to test the effectiveness of monetary policy, monetary policy efficiency has long been discussed. In this paper, we adopt the stochastic frontier analysis (SFA) based on translog function to measure the Chinese monetary policy efficiency from 1998 to 2011. Our empirical results indicate that economic growth and price stability have the same weights in the Chinese monetary policy function. Money aggregate (M2) has a larger impact on the monetary policy targets than interest rate does. Generally speaking, Chinese monetary policy efficiency is not so high and needs to be improved. To enhance monetary policy efficiency, China should reform its monetary policy framework by introducing the flexible targets into the monetary policy framework, further the interest rate reform and continue the reform on the Renminbi exchange rate regime.
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This is an open access article distributed under the CC BY-NC license.

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Proceedings
International Academic Workshop on Social Science (IAW-SC-13)
Part of series
Advances in Intelligent Systems Research
Publication Date
October 2013
ISBN
978-90-78677-84-0
ISSN
1951-6851
DOI
https://doi.org/10.2991/iaw-sc.2013.66How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Wan Jieqi
AU  - Gui Cheng
AU  - Tao Xu
PY  - 2013/10
DA  - 2013/10
TI  - Empirical Analysis on Monetary Policy Efficiency in China
BT  - International Academic Workshop on Social Science (IAW-SC-13)
PB  - Atlantis Press
SN  - 1951-6851
UR  - https://doi.org/10.2991/iaw-sc.2013.66
DO  - https://doi.org/10.2991/iaw-sc.2013.66
ID  - Jieqi2013/10
ER  -