2006–2010

The Transition to Market-based Monetary Policy: What can China Learn from the European Experience?

Särtryck nr 2007:4

Författare: Jens Forsbæck och Lars OxelheimÅr: 2007 Publikation: Journal of Asian Economics Årgång (nr): 18 (2) Sidor: 257–283


We discuss the prospects for Chinese money market development and transition to market-based monetary policy operations based on a comparative historical analysis of the present Chinese situation and the development in 11 European countries from 1979 up to the launch of the European Economic and Monetary Union (EMU). Central banks in the latter group of countries typically had an incentive to encourage the formation of efficient benchmark segments in the domestic money markets for the conduct of open market operations as traditional quantity-oriented instruments became increasingly ineffective. China is displaying many of the same symptoms as the European countries in the 1970s and 1980s, including poor monetary transmission due to excess liquidity and conflicts of interest due to unclear priority among multiple policy goals.We conclude that in a number of aspects, current Chinese monetary policy operations are counter-productive to efforts to develop an efficient money market that can serve as arena for an effective market-based monetary policy, and provide policy recommendations.

 

* With the permission of Elsevier published in Chinese in Journal of Comparative Studies, issue 33, 2007


Referens:
Forsbæck, Jens och Lars Oxelheim (2007), "The Transition to Market-based Monetary Policy: What can China Learn from the European Experience?". Journal of Asian Economics 18(2), 257–283.

Lars Oxelheim

Kontakt

Tel: 08 665 4527
Mobil: 070 861 9361
lars.oxelheim@ifn.se

Aktuell forskare

Henrik Jordahl

Forskningsområden: Skattefinansierade tjänster, privatiseringar samt väljarbeteende.

Några av de frågor Henrik Jordahl försöker besvara i sin forskning:

  • Vad förklarar valet mellan offentlig och privat tjänsteproduktion?
  • Hur påverkar detta val tjänsternas kostnader och kvalitet?

IFN kalendarium

  • 18
    Aug

    IFN-forskare till konferens i Tokyo

    Externa aktiviteter

    Henrik Jordahl, Martin Olsson, Niclas Berggren, Lovisa Persson, Daniel Waldenström, Åsa Hansson och Karin Edmark

Institutet för Näringslivsforskning, Grevgatan 34 - 2 tr, Box 55665, SE-102 15 Stockholm, Sweden | Tel: +46-(0)8-665 45 00 | info@ifn.se