South Africa: Macroeconomic Perspectives for the Medium Term

World Development 24(6):989-1001. DOI: 10.1016/0305-750X(96)00018-6

Posted: 14 Dec 2014

See all articles by Finn Tarp

Finn Tarp

University of Copenhagen - Department of Economics

Peter Brixen

Independent

Date Written: January 1996

Abstract

China’s monetary policy applies to two sets of monetary policy instruments: (i) instruments of the Central Bank (CB), the People’s Bank of China (PBC); and (ii) non-Central Bank (NCB) policy instruments. Additionally, the PBC’s instruments include: (i) price-based indirect; and (ii) quantity-based direct instruments. The simultaneous usage of these instruments leads to various distortions that ultimately prevent the interest rate channel of monetary transmission from functioning. Moreover, the strong influence of quantity-based direct instruments and non-central bank policy instruments bring into question the approach of indirect monetary policy in general.

Suggested Citation

Tarp, Finn and Brixen, Peter, South Africa: Macroeconomic Perspectives for the Medium Term (January 1996). World Development 24(6):989-1001. DOI: 10.1016/0305-750X(96)00018-6 , Available at SSRN: https://ssrn.com/abstract=2537752

Finn Tarp (Contact Author)

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Peter Brixen

Independent ( email )

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