Ontology highlight
ABSTRACT:
SUBMITTER: Sun O
PROVIDER: S-EPMC5112855 | biostudies-literature | 2016
REPOSITORIES: biostudies-literature
PloS one 20161116 11
We examine the different effects of monetary policy actions and central bank communication on China's stock market bubbles with a Time-varying Parameter SVAR model. We find that with negative responses of fundamental component and positive responses of bubble component of asset prices, contractionary monetary policy induces the observed stock prices to rise during periods of large bubbles. By contrast, central bank communication acts on the market through expectation guidance and has more signif ...[more]