Reserve requirements and optimal Chinese stabilization policy

• 成果类型: Article
• 署名作者: Chang, Chun; Liu, Zheng; Spiegel, Mark M.; Zhang, Jingyi
• 署名单位: Shanghai Jiao Tong University; Federal Reserve System - USA; Shanghai University of Finance & Economics
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.08.005
• 发表日期: 2019
• 页码: 33-51
• 关键词: reserve requirements; Chinese monetary policy; Off-balance sheet loans; Financial accelerator; Reallocation and productivity

摘要

China's central bank frequently adjusts reserve requirements for macroeconomic stabilization. We evaluate the effectiveness of such policy in a two-sector DSGE model. A heavy-industry sector-proxied as state-owned enterprises (SOEs)-is financed through government-guaranteed bank loans subject to reserve requirements, while more productive private firms rely on unregulated off-balance sheet financing. Increasing reserve requirements reallocates resources towards private firms, raising both aggregate productivity and SOE bankruptcies. Optimal reserve requirement adjustments complement money supply adjustments in improving macroeconomic stability and welfare. However, gains are greater under sector-specific shocks, which call for resource reallocation, than under aggregate shocks. (C) 2018 Elsevier B.V. All rights reserved.