Crude oil price shocks, monetary policy, and China's economy
By Fenghua Wen, Feng Min, Yue‐Jun Zhang, Can Yang. International Journal of Finance and Economics, 2018
130 citations recorded by the source corpus.
This paper develops a time‐varying parameter vector autoregressive model to examine the dynamic effects of crude oil prices and monetary policy on China's economy during January 1996 to June 2017. The empirical results indicate that (a) in general, international crude oil price shocks have positive effect on China's economic growth and inflation in the short run, but the long‐run effect appears diverse; (b) China's monetary policy shocks have positive effect on the economic growth and inflation overall; specifically, an increase in monetary supply can partly offset crude oil prices' negative effect on China's economic growth; (c) China's monetary policy has positive effect on crude oil prices and plays an important role in the relationship between crude oil price shocks and economy; and (d) during the recent global financial crisis, crude oil price shocks produce greater negative effect on China's economic growth, whereas the long‐run effect of monetary policy on China's economic growth proves weaker, compared with other periods.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/c641e7a395385afa51221fe54158d86485054c92
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Citations in the corpus
- The pass-through effects of oil price shocks on China's inflation: A time-varying analysis (2020, background): “, 2018), and several scholars have also discovered that oil price shocks have dynamic impacts on China’s macroeconomy (Gong and Lin, 2018b; Wen et al., 2019a).”