首页 | 本学科首页   官方微博 | 高级检索  
     检索      


Price- vs. Quantity-Based Monetary Policies and Credit Substitution Asymmetry
Authors:Xiaojun Shi  Rong Ma  Xing Liu
Institution:1. China Financial Policy Research Center, School of Finance, Renmin University of China, Beijing, P.R. China;2. School of Economics and Management, Tsinghua University, Beijing, P.R. China;3. School of Finance, Renmin University of China, Beijing, P.R. China
Abstract:The literature on the informal credit channels of the transmission of monetary policy overlooks the distinction between price- and quantity-based policies. This article contributes to filling this gap by investigating the asymmetric effects of the two types of policies on trade-credit substitution for bank credit using data from the largest emerging economy, China. China presents an ideal experimental context, as the country has implemented both types of monetary policies in the past decades. We find strong evidence that quantity-based monetary policy has stronger effects on credit substitution in China. This evidence is robust under both static and dynamic specifications, which remains intact after the disentanglement of the interdependency of the two types of policies. By subgrouping, we find that large and state-controlled firms play the central role in creating the substitution asymmetry. Furthermore, international evidence indicates that India also witnesses substitution asymmetry skewed to quantity-based policies. The findings suggest the need for further reform of China’s financial system toward a market-based system to enhance the effectiveness of the proposed monetary policies.
Keywords:bank credit  credit substitution  monetary policy  trade credit
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号