Impacts of Monetary-Fiscal Policy Interaction Kaiji Chen, Haoyu Gao, Patrick Higgins, Daniel F. Waggoner, Tao Zha, Dec 02, 2020
Impacts of Monetary-Fiscal Policy Interaction Kaiji Chen, Haoyu Gao, Patrick Higgins, Daniel F. Waggoner, Tao Zha, Dec 02, 2020 China’s 2009 stimulus presents an ideal case for exploring the impacts of monetary-fiscal interaction on credit allocation and investment. During this stimulus period, monetary stimulus itself did not favor SOEs over non-SOEs in credit access. Fiscal expansion, however, enhanced the monetary transmission to bank credit that was allocated to local government financing vehicles (LGFVs) for infrastructure and at the same time weakened the impacts of monetary stimulus on bank credit to non-SOEs in other sectors.
Faking Trade for Capital Control Evasion: Evidence from Dual Exchange Rate Arbitrage in China Renliang Liu, Liugang Sheng, Jian Wang, Nov 25, 2020 We examine whether firms over-report international trade to evade capital controls for foreign exchange arbitrage, by specifically testing whether the aggregate bilateral trade data gap between trading partners is positively (negatively) correlated with the exchange rate spread when the spread is positive (negative). At the disaggregated level, we also employ Benford’s law to detect trade data manipulations...
Capital Regulations, Bank Risk-Taking, and Monetary Policy in China Xiaoming Li, Zheng Liu, Yuchao Peng, Zhiwei Xu, Nov 18, 2020 China implemented Basel III in 2013 and tightened bank capital regulations. Empirical evidence shows that the new regulations significantly reduced bank risk-taking following monetary policy easing. To meet the tightened capital requirements, banks respond to a balance-sheet expansion by raising the share of lending to state-owned enterprises (SOEs) that are perceived as low-risk borrowers under government...
VoxChina Covid-19 Forum (Second Edition): China’s Post-Lockdown Economic Recovery VoxChina, Apr 18, 2020 The lockdowns induced by Covid-19 have led to unprecedented challenges to economies across the globe. The second edition of the VoxChina Covid-19 Forum focuses on China’s post-lockdown economic recovery, with three presentations that are based on data analysis of small businesses, consumption, e-commerce, and beyond, each for 15 minutes. There will be 30 minutes of Q&As.
VoxChina Covid-19 Forum (First Edition): Public Health and Public Policy VoxChina, Apr 11, 2020 Covid-19 poses unprecedented challenges to the global health and global economy. We are pleased to initiate a series of Covid-19 Public Health and Public Policy Virtual Forums to discuss the impact and policy responses to Covid-19.