He, Dong; Pauwels, Laurent L. - In: China & World Economy 16 (2008) 6, pp. 1-21
In the present paper, we model the policy stance of the People's Bank of China (PBC) as a latent variable, and the discrete changes in the reserve requirement ratio, policy interest rates, and the scale of open market operations are taken as signals of movement of this latent variable. We run a...