Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)

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An Analysis of the Effectiveness of China’s Monetary Policy Transmission Mechanism on GDP: Based on Vector Autoregression Model

Authors
Xianquan Meng1, *
1Fakulti Ekonomi Dan Pengurusan, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia
*Corresponding author. Email: xqmeng.hk@gmail.com
Corresponding Author
Xianquan Meng
Available Online 19 December 2024.
DOI
10.2991/978-94-6463-598-0_17How to use a DOI?
Keywords
monetary policy transmission mechanism; the amount of money supplied; credit channels; GDP; VAR model
Abstract

How monetary policy affects the level of macroeconomic development is one of the issues that economists have studied deeply. Based on quarterly data from 2004 to 2023, this paper establishes a VAR model and studies the effectiveness of credit channel and money channel on monetary policy transmission through Johansen cointegration test and Granger causality test. The results show that both of them are beneficial to the role of monetary policy, but the correlation between them is small. In addition, the credit channel is the main channel of China’s monetary policy transmission, although the role of the money channel is relatively stable but the influence is small. Based on the content of the study, the authors propose relevant policy implications to facilitate the effective functioning of China’s monetary policy.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
19 December 2024
ISBN
978-94-6463-598-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-598-0_17How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xianquan Meng
PY  - 2024
DA  - 2024/12/19
TI  - An Analysis of the Effectiveness of China’s Monetary Policy Transmission Mechanism on GDP: Based on Vector Autoregression Model
BT  - Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)
PB  - Atlantis Press
SP  - 149
EP  - 160
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-598-0_17
DO  - 10.2991/978-94-6463-598-0_17
ID  - Meng2024
ER  -