Explaining money demand in China during the transition from a centrally planned to a market-based monetary system.

Fundamental changes in institutions during the transition from a centrally planned to a market economy present a formidable challenge to monetary policy decision makers. For the case of China, we examine the institutional changes in the monetary system during the process of transition and develop mo...

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Publicado en:Post-Communist Economies Vol. 26; no. 3; pp. 376 - 401
Autores principales: Delatte, Anne-Laure, Fouquau, Julien, Holz, Carsten
Formato: Artículo
Publicado: Taylor & Francis Ltd Sep2014
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Sep2014
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      pub: Taylor & Francis Ltd
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        10.1080/14631377.2014.937099
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        atl: Explaining money demand in China during the transition from a centrally planned to a market-based monetary system.
      aug:
        au:
          Delatte, Anne-Laure
          Fouquau, Julien
          Holz, Carsten
        affil:
          CNRS and CEPR, Nanterre, France
          Neoma Business School
          HKUST
      su:
        Capitalism
        Economic models
        Demand for money
        Strategic planning
        Monetary systems
        Estimation theory
      sug:
        subj:
          Capitalism
          Economic models
          Demand for money
          Strategic planning
          Monetary systems
          Estimation theory
      ab: Fundamental changes in institutions during the transition from a centrally planned to a market economy present a formidable challenge to monetary policy decision makers. For the case of China, we examine the institutional changes in the monetary system during the process of transition and develop money demand functions that reflect these institutional changes. We consider seasonal unit roots and estimate long-run, equilibrium money demand functions, explicitly taking into consideration the changes in the institutional characteristics of China's financial system. Using a newly compiled dataset that covers an unprecedentedly long period, 1984—2010, with quarterly frequency, we are able to draw conclusions on the transitions in households', firms' and aggregate money demand, on the role of the credit plan and interest rates, on the mechanisms of macroeconomic control during economic transition, and on theoretical questions in the development and money literature.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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