Transmission of shocks to the Chinese economy in a global context: A model-based approach

Arbeitspapier

To better understand the dynamics of the Chinese economy and its interaction with the global economy, the authors incorporate China into an existing model for the G-3 economies (i.e., the United States, the euro area, and Japan), paying particular attention to modelling the exchange rate and monetary policy in China. Their findings suggest that the Chinese economy adjusts more slowly to shocks, compared to the large advanced economies, because monetary policy is less effective and the real exchange rate more persistent. In addition, the authors' model underscores the importance of spillovers from China to the G-3 economies, and vice versa, thus highlighting the need to analyze the Chinese economy in a global context.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Canada Working Paper ; No. 2010-17

Classification and Topics

• Classification: Wirtschaft ; Business Fluctuations; Cycles ; Monetary Policy ; Open Economy Macroeconomics
• Subject: Economic models ; international topics ; business fluctuations and cycles ; exchange rate regimes ; Globalisierung ; Schock ; Geldpolitik ; Wechselkurspolitik ; Wirtschaftslage ; China ; EU-Staaten ; USA ; Japan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bailliu, Jeannine ; Blagrave, Patrick
• Event: Veröffentlichung
• (who): Bank of Canada
• (where): Ottawa
• (when): 2010

Further information

• DOI: doi:10.34989/swp-2010-17
• Handle: http://hdl.handle.net/10419/53766
• Last update: 10.03.2025, 11:46 AM CET