This paper studies the efficacy of China's financial reforms in helping the central monetary authority to achieve its goals of macroeconomic stabilization. A local-local monetary game is presented which examines the investment competition between local governments in different hypothetical...

We study the impact of China’s 2013 implementation of Basel III on bank risk-taking and its responses to monetary policy shocks using confidential loan-level data from a large Chinese bank. Guided by theory, we use a difference-in-difference identification, exploiting cross-sectional...

We study the impact of China's 2013 implementation of Basel III on bank risk-taking and its responses to monetary policy shocks using confidential loan-level data from a large Chinese bank. Guided by theory, we use a difference-in-difference identification, exploiting cross-sectional differences...

We present evidence that tightened bank capital requirements after China implemented the Basel III capital regulations in 2013 have reduced bank risk-taking following expansionary monetary policy shocks. Under the new regulations, a bank can boost its effective capital adequacy ratio (CAR) by...

This paper does three things. First, it explores the type of asymmetry in exchange rate correlation for five inflation-targeting countries. We show their currencies co-move more closely with the currencies of some influential foreign countries during joint appreciations than joint depreciations...

This paper studies the efficacy of China's financial reforms in helping the central monetary authority to achieve its goals of macroeconomic stabilization. A local-local monetary game is presented which examines the investment competition between local governments in different hypothetical...

The Bank of Japan (BOJ) purchased large amounts of equity index ETFs as part of its Quantitative Easing Policy. As the BOJ’s ETF includes a large proportion of price-weighted Nikkei 225 index ETFs, the BOJ’s holdings over-weight those shares relative to the market value weight. Thus, the...

As part of its unconventional monetary policy, since 2010 the Bank of Japan (BOJ) has purchased equity index exchange-traded funds (ETFs). The total purchased amount reached 3% of GDP and the bank has become among the largest shareholders in over 40% of listed companies. Because of the reduction...