This paper discusses the macroeconomic effects of China's informal banking regulatory tool “window guidance,” introduced in 1998. Using an open-economy DSGE model that includes the commercial banking sector, we study the stabilizing effects of this non-standard quantitative monetary policy...

Persistent producer price deflation in China and other Asian economies has become a genuine concern for policymakers. In August 2016, China's producer prices were down 12.4 percent from their peak in 2011, following a 54-month stretch of consecutive negative producer price readings (March 2012...