New Working Paper on Chinese Monetary Policy

In a recent working paper, my co-author Dirk Ehnts and I have put together our analysis of the People’s Bank of China (PBoC)’s monetary policy. In particular, we have drawn attention to the money supply implications arising from the standard theory Mundell–Fleming view of sterilization and money supply growth standing in contrast to the practical implementation by the PBoC over the past decade. We have summarized our analysis in a policy paper cum empirical analysis:

Körner, Finn Marten and Ehnts, Dirk, Chinese Monetary Policy – From Theory to Practice (February 7, 2013). Available at SSRN: and MPRA: