Since 2014
The Bank Capital Regulation and Monetary Policy
Canadian Social Science
View Archive Info| Field | Value | |
| Title |
The Bank Capital Regulation and Monetary Policy
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| Creator |
DAI, Junxun
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| Subject |
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Bank capital regulation; Monetary policy; Joint effectiveness — |
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| Description |
Bank capital regulation under Basel Accord has changed the allocation of credit funds and the operation rule of the economy in great degree, and subsequently affected the foundation condition and transmission mechanism of the monetary policies. Given the business cycle, this paper makes the extended analysis of the IS-LM model under capital regulation, and finds that capital regulation will induce the asymmetric effects of monetary policy through the bank lending channel, so theoretically demonstrates that the operation of monetary policy must consider the bank capital regulation. This paper also employs Stochastic Frontiers Analysis to test the joint effectiveness of monetary policy and Bank capital regulation in china from 2000-2009. This test shows that the effectiveness of the monetary policy on realizing economic objective would be weakened by bank capital regulation in China. Therefore, to achieve the objectives of stable price and output, the authority must consider the capital requirement of the banks when enacting the monetary policy,.Key words: Bank capital regulation; Monetary policy; Joint effectiveness
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| Publisher |
Canadian Research & Development Center of Sciences and Cultures
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| Contributor |
Supported by The Ministry of Education of the People’s Republic of China (NO. 10YC790037) and the Fundamental Research Funds for the Central Universities
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| Date |
2012-08-31
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article — |
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| Format |
application/pdf
application/pdf |
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| Identifier |
http://www.cscanada.net/index.php/css/article/view/j.css.1923669720120804.1231
10.3968/j.css.1923669720120804.1231 |
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| Source |
Canadian Social Science; Vol 8, No 4 (2012): CANADIAN SOCIAL SCIENCE; 38-46
1923-6697 1712-8056 |
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| Language |
eng
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| Relation |
http://www.cscanada.net/index.php/css/article/view/j.css.1923669720120804.1231/2779
http://www.cscanada.net/index.php/css/article/view/j.css.1923669720120804.1231/3786 |
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