An International Comparative Study on China's Monetary Policy -An Empirical Analysis Based on Panel Data in Asian Countries

摘要

Based on the panel data from 1985 to 2008 in Asian countries, the present paper studies respectively the long-run equilibriums between narrow money supply (Ml) (or M2), price and GDP around the Asian financial crisis by analyzing the panel unit root, panel cointegration. As the result, it turns out that long-run equilibrium exists between Ml, price and GDP, and the relationship between M2, price and GDP varied during the post-crisis period. It also suggests that China can also use money supply as intermediate target at the current stage; however, the impact of M1 on next period's price is more than spot price, while the impact of M2 on spot price is more than M1.