1 option
Monetary Stimulus Amidst the Infrastructure Investment Spree: Evidence from China's Loan-Level Data / Kaiji Chen, Haoyu Gao, Patrick C. Higgins, Daniel F. Waggoner, Tao Zha.
- Format:
- Book
- Author/Creator:
- Chen, Kaiji.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w27763.
- NBER working paper series no. w27763
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- We study how a fiscal expansion via infrastructure investment influences the dynamic impacts of monetary stimulus on credit allocation. We develop a two-stage approach and apply it to the Chinese economy with a confidential loan-level dataset that covers all sectors. We find that infrastructure investment significantly weakened monetary policy's transmission to credit allocated to private firms, while reinforcing the monetary effects on loans to state-owned firms. This fiscal-monetary interaction channel is key to understanding the preferential credit access enjoyed by state-owned firms during the stimulus period. Consequently, monetary stimulus crowded out private investment and lowered efficiency in capital allocation.
- Notes:
- Print version record
- August 2020.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.