The People’s bank of China’s response to the coronavirus pandemic: A quantitative assessment

Michael Funke and Andrew Tsang

Economic Modelling, 2020, vol. 93, issue C, 465-473

Abstract: The People’s Bank of China (PBoC) has implemented numerous measures to cushion the impacts of the COVID-19 health crisis on the Chinese economy. Since the current monetary policy framework features a multi-instrument mix of liquidity tools and pricing signals, we employ a dynamic-factor modelling approach to derive a composite indicator of China’s monetary policy stance. Our quantitative assessment shows that the PBoC’s policy response to the outbreak of the COVID-19 pandemic has been swift and decisive. Specifically, our estimates reveal that the PBoC has implemented novel policy measures to ensure that commercial banks maintain liquidity access and credit provision during the COVID-19 crisis.

Keywords: Corona pandemic; COVID-19; China; Monetary policy; Dynamic factor model (search for similar items in EconPapers)
JEL-codes: C54 E32 E52 I15 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999320311792
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The People's Bank of China's response to the coronavirus pandemic: A quantitative assessment (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:93:y:2020:i:c:p:465-473

DOI: 10.1016/j.econmod.2020.08.018

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().