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The Effect of the Scale of Shadow Banking on the China Monetary Policy

Huyang Quan

Abstract


Based on determining the concept of the scale of shadow banking, this dissertation employs the VAR model to model China’s monetary policy indicators and the scale of shadow banking, so that understands the underlying mechanism of its impact on monetary policy. The
study found that the scale of China’s shadow banking has undergone cyclical changes during the sample period and have a short-term and
long-term effect on monetary policy in this dissertation.

Keywords


Shadow Banking; China Monetary Policy; Vector Autoregressive Model; Augmented Dickey-Fuller

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References


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DOI: http://dx.doi.org/10.18686/fm.v9i1.12033

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