The Timing of Central Bank Communication: Evidence from China

20 Pages Posted: 12 Feb 2015 Last revised: 15 Feb 2015

See all articles by Rongshang Hu

Rongshang Hu

Independent; Hunan University

Qi Wei

Hunan University - School of Finance and Statistics

Qiang Zhang

Hunan University - School of Finance and Statistics

Date Written: February 12, 2015

Abstract

In recent years, central bank communication played an important role in monetary policy operations. In this paper, LSTVAR model is used to study the timing of central bank communications as well as the effects of central bank communications and traditional monetary policy tools under different economic status. The results show that monetary policy of China is asymmetric. The state of the economy can be divided into high growth and low growth, and the effectiveness of monetary policy tools will change under different economic status. The central bank should accurately determine the state of the economy and rationally use the various monetary policy tools for better play to the strength of different monetary tools.

Keywords: Central bank communication, monetary policy tools, LSTVAR model

JEL Classification: E52, E58, E43

Suggested Citation

Hu, Rongshang and Wei, Qi and Zhang, Qiang, The Timing of Central Bank Communication: Evidence from China (February 12, 2015). Asian Finance Association (AsianFA) 2015 Conference Paper, Available at SSRN: https://ssrn.com/abstract=2563926 or http://dx.doi.org/10.2139/ssrn.2563926

Rongshang Hu

Independent ( email )

Hunan University ( email )

2 Lushan South Rd
Changsha, CA Hunan 410082
China

Qi Wei (Contact Author)

Hunan University - School of Finance and Statistics ( email )

Shijiachong Road 109#
Changsha, Hunan 410079
China

Qiang Zhang

Hunan University - School of Finance and Statistics ( email )

Shijiachong Road 109#
Changsha, Hunan 410079
China

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