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


Mix of Fiscal and Monetary Policy Rules and Inflation Dynamics in China
Authors:Qingwang Guo  Junxue Jia  Yongjie Zhang  Zhiyun Zhao
Institution:[1]China Financial Policy Research Center, School of Finance, Renmin University of China, Beijing, China [2]School of Finance, Renmin University of China, Beijing, China [3]Institute of Scientific and Technical Information of China, Beijing, China
Abstract:The present paper examines the role of the mix of fiscal and monetary policy rules in determining inflation dynamics using fiscal and monetary policy reaction functions and Markov‐switching vector autoregression methods based on quarterly data in the period 1992–2007. Our results show that fiscal and monetary policies in China can be adequately described using some simple rules, and that significant regime shifts took place around 1998. Fiscal policy tended to be active and countercyclical in the pre‐1998 period, then switched to be passive and more countercyclical, whereas monetary policy was characterized as passive and procyclical in the pre‐1998 period, and switched to be active and countercyclical afterwards. The mix of fiscal and monetary policy rules can explain inflation dynamics better than the monetary policy rule alone. Therefore, price stability requires not only appropriate monetary policy but also appropriate fiscal policy.
Keywords:fiscal policy rules  generalized method of moment  inflation dynamics  Markov‐switching vector autoregressions  monetary policy rules  E31  E61  E63
本文献已被 维普 等数据库收录!
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