Influence of Government'S Monetary Policy on Exchange Rates

Zhou Qiujie; Wang Pei
June 2015
Metallurgical & Mining Industry;2015, Issue 6, p142
Academic Journal
Nowadays the steady pursuit of economic growth is an important goal of the current national economic growth, and in the current complicated international and domestic situation, Chinese economic growth will inevitably be affected, economic volatility has become increasingly evident. In order to solve the bad influence we build the DSGE model. The model use the hypothesis of CIA and let the international interest rate as a function of a country's net foreign debt or savings, while adding domestic currency impact, then establish dynamic DSGE models. By comparing the monetary shocks impact between the actual data and simulated data, we find that in the short term the impact of technology can rapidly decrease the exchange rate, and then gradually rise back to steady equilibrium. Also hold international assets can reduce the negative impact by monetary shocks. International assets as a shock absorber, can slow the impact of domestic monetary shocks.


Related Articles

  • Credit complacency.  // China Economic Review (13506390);Sep2009, Vol. 20 Issue 9, p8 

    The article discusses the implication of the Chinese government's lax attitude towards its monetary policy to the economic future of the country. It mentions that lending glut in the country has left those responsible for ensuring the financial stability of the nation to be worried about its...

  • Politics take spotlight. RICHARDSON, JOHN // ICIS Chemical Business;10/1/2012, Vol. 282 Issue 9, p8 

    The article discusses the economic effects of the 2012 change in Chinese government leadership, due to uncertainty over the transition as well as debates over the ownership of islands in the East China Sea with Japan. Government investment, economic growth, and the income gap in China are...

  • China damage control. Richardson, John // ICIS Chemical Business;3/9/2015, Issue 3226, p10 

    The article discusses the implications of China's decision to ease monetary policy to stimulate economic growth. Topics discussed include the move of the People's Bank of China (PBOC) to cut the bank reserve requirement ratio (RRR), the lowering of the one-year lending rate, and the increase in...

  • The lucky country. Kohler, Alan // Money (Australia Edition);Oct2010, Issue 128, p82 

    The author commends the investment environment in Australia, and compares it to U.S. and China. He relates that the U.S. economy is facing problems of unemployment and inadequate funds of the government amid its planned infrastructure project worth 50 billion U.S. dollars. He notes China...

  • New quarterly macroeconomic outlooks. CHANG, JOSEPH // ICIS Chemical Business;2/21/2011, Vol. 279 Issue 7, p5 

    The article presents an overview of China's economic growth through 2015, during the government's Five-Year Plan.

  • BY THE NUMBERS.  // Newsweek (Atlantic Edition);9/1/2008 (Atlantic Edition), Vol. 152 Issue 9, p5 

    The article presents statistics on China's consumer spending for 2008.

  • Is China repeating the mistakes of the US? Richardson, John // ICIS Chemical Business;5/11/2009, Vol. 275 Issue 19, p29 

    A blog from Michael Pettis, professor at Peking University's Guanghua School of Management, on economic conditions in China, is discussed.

  • REASONS CHINESE CONSUMERS WON'T SAVE THE WEST. Madden, Normandy // Advertising Age;12/15/2008 Book of Tens, Vol. 79 Issue 46, p21 

    The article lists several reasons why Chinese consumers cannot balance the weakness in the struggling Western economy of 2008, including faltering economic growth in China, a decrease in automobile sales in China, and slowing growth in Chinese property prices.

  • China's Economy Needs Some More Foreigners: Christopher Balding. Balding, Christopher // Bloomberg View;7/30/2017, p1 

    No abstract available.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics