In this study, we estimate and investigate the evolution of monetary rules in China and the UnitedStates during the 21st century. Our aim is to examine whether financial stability has been takeninto consideration in practical monetary policy decision making. By proposing a new estimation method...

In this study, we estimate and investigate the evolution of monetary rules in China and the United States in the 21st century. Our goal is to examine if financial stability has been taken into consideration in practical monetary policy decision-making. By proposing a new estimation method that...

This paper proves in a New Keynesian model that interest rate pegging can explain the unusual business cycle fluctuations in China. It is traditional wisdom that when the nominal interest rate is inflexible, there is no unique equilibrium in macroeconomic models. We prove that a unique...