China's exchange rate policy and its impacts on Chinese and Japanese economies
| Project/Area Number |
20530248
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Economic policy
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| Research Institution | Osaka Prefecture University |
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Principal Investigator |
HAN Chi Osaka Prefecture University, 経済学部, 准教授 (40405329)
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| Co-Investigator(Kenkyū-buntansha) |
MIYAMOTO Katsuhiro 関西大学, 会計研究科, 教授 (80078998)
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| Project Period (FY) |
2008 – 2010
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| Project Status |
Completed (Fiscal Year 2010)
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| Budget Amount *help |
¥2,600,000 (Direct Cost: ¥2,000,000、Indirect Cost: ¥600,000)
Fiscal Year 2010: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2009: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
Fiscal Year 2008: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
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| Keywords | 政策シミュレーション / 中国の為替政策 / 中国の金融政策 / DSGEモデル / asymmetric preferences / inflation fluctuations / monetary policy rule / real exchange rate / DSGE model / McCallum rule / Taylor rule / PCP / LCP / China / exchange rate pass-through / exchange rate dynamics / simulation |
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| Research Abstract |
This study established a two-country dynamic stochastic general equilibrium (DSGE) model with an incomplete pass-through of exchange rate and an incomplete asset market to simulate and analyze the impacts of China's monetary policy and exchange rate policy on Chinese and Japanese and China's other main trade-partner's economies. Based on simulated results, we can obtain following conclusions :
(1) This study suggests that China's monetary authority should use the McCallum rule as an optimal monetary policy to keep China's inflation stable. This study finds that compared to the Taylor rule, the McCallum rule contributes to maintaining a lower fluctuation of inflation although it generates a somewhat larger fluctuation of real output.
(2) Furthermore, this study finds that the monetary policy rule under asymmetric preferences can explain why China's inflation is more flexible than its real output.
(3) This study suggests that China's monetary authority should use an alternative monetary policy that reacts not only to inflation and real output but also to real exchange rate as an optimal monetary policy to manage its economy. This study finds that the alternative monetary policy will lead to a larger improvement of China's inflation fluctuation.
(4) Finally, this study finds that the China's optimal monetary policies studied above have no obviously different impacts on Japanese and China's other main trade-partners'economies.
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Report
(4 results)
Research Products
(2 results)
