An Empirical Study on the Measurement of Monetary Policy Rules and Discretion Shocks in China

摘要

This paper uses the SVaR model to illustrate the rules and discretion components in monetary policy in China, and analysis the monetary policy stance in China from 1996 to 2005. The analysis find that our monetary authority makes the monetary policy based on some type of monetary policy rules such as Taylor Rules and considers some extent of discretion. With development of interest rate reformation, our monetary policy function has gone into the mode of solidity.