Incorporating asymmetric cost and benefit of supplying excess liquidity into an otherwise standard time inconsistency model this paper offers an explanation of the excess liquidity and housing price booms recently exp...Incorporating asymmetric cost and benefit of supplying excess liquidity into an otherwise standard time inconsistency model this paper offers an explanation of the excess liquidity and housing price booms recently experienced in China. We find that the central bank＇s incentive to stimulate eeonomie growth with excess liquidity fuels real estate prices and accelerates inflation bias. Therefore, the central bank should free itself from the pressure to achieve an economic growth rate higher than the potential level and assign an appropriate weight to the real estate price fluctuations in the central bank＇s objective function, so that the central bank ＂s policy of stimulating economic growth with excess liquidity can be constrained.展开更多
China has become the biggest exporter of electronic products in the world. Government policy intervention has contributed significantly to the rapid expansion of the electronics industry. The present paper examines th...China has become the biggest exporter of electronic products in the world. Government policy intervention has contributed significantly to the rapid expansion of the electronics industry. The present paper examines the evolutionary development of industrial policies related to the electronics industry in China and the impacts of such policies on the shaping of the industry, ln particular, the relationship between foreign funded enterprises and domestic firms are examined in detail. The future trend of the industry is also discussed in the paper, and thepolicyfocus of the Chinese Government is predicted.展开更多
文摘Incorporating asymmetric cost and benefit of supplying excess liquidity into an otherwise standard time inconsistency model this paper offers an explanation of the excess liquidity and housing price booms recently experienced in China. We find that the central bank＇s incentive to stimulate eeonomie growth with excess liquidity fuels real estate prices and accelerates inflation bias. Therefore, the central bank should free itself from the pressure to achieve an economic growth rate higher than the potential level and assign an appropriate weight to the real estate price fluctuations in the central bank＇s objective function, so that the central bank ＂s policy of stimulating economic growth with excess liquidity can be constrained.
基金This paper is the main report of the project "China’s Industrial Policy Related to Electronics Manufacturing", which is sponsored by the United Nations Conference of Tradeand Development (Contract number OBID 14571).
文摘China has become the biggest exporter of electronic products in the world. Government policy intervention has contributed significantly to the rapid expansion of the electronics industry. The present paper examines the evolutionary development of industrial policies related to the electronics industry in China and the impacts of such policies on the shaping of the industry, ln particular, the relationship between foreign funded enterprises and domestic firms are examined in detail. The future trend of the industry is also discussed in the paper, and thepolicyfocus of the Chinese Government is predicted.
