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Ownership and Productivity in Vertically Integrated Firms in China
Loren Brandt, Feitao Jiang, Yao Luo, Yingjun Su, May 27, 2020This paper studies differences in the internal configuration and productivity in vertically integrated steel facilities in China using equipment-level information on inputs and output for each of the main stages in the value chain. At the facility level, we do not find statistically significant differences in productivity by ownership. This conceals important differences in the value chain: private firms outperform in pig iron...
How Credible Is Hong Kong’s Currency Peg
Urban Jermann, Bin Wei, Vivian Yue, Apr 08, 2026Using daily spot exchange rates and derivatives prices, we estimate a peg-survival probability p and an implied fundamental value of V for HKD under an alternative regime...
Do Interest Rates Play a Major Role in Monetary Policy Transmission in China?
Gunes Kamber, Madhusudan Mohanty, Aug 17, 2018We explore the role of interest rates in monetary policy transmission in China in the context of its multiple instrument setting. In doing so, we construct a new series of monetary policy surprises using information from high frequency Chinese financial market data around major monetary policy announcements. We find that a contractionary monetary policy surprise increases interest rates and significantly reduces inflation and economic activity. Our findings provide further support to recent studies suggesting that monetary policy transmission in China has become increasingly similar to that in advanced economies.
Verifying China’s COVID-19 Recovery Using the FRBSF China CAT
Remy Beauregard, John G. Fernald, Mark M. Spiegel, Dec 23, 2020Using the FRBSF China Cyclical Activity Tracker, we confirm the robustness of China’s recovery from the COVID-19 downturn. The FRBSF “China CAT” estimates that first quarter 2020 China GDP plunged 6.4 standard deviations below its detrended level a year earlier, but by the end of the third quarter, China economic activity had recovered to only 0.1 standard deviations below trend. As such, the FRBSF China CAT index validates the accuracy...
Impacts of Monetary-Fiscal Policy Interaction
Kaiji Chen, Haoyu Gao, Patrick Higgins, Daniel F. Waggoner, Tao Zha, Dec 02, 2020China’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...
