Uncertainty of Economic Policy and Credit Transmission Channel of Monetary Policy

Duo Zhou

《Frontiers in Economics and Management》 3卷4期 (2022/04) Pp. 329-338

https://doi.org/10.6981/FEM.202204_3(4).0044

摘要

The article investigates the impact of economic policy uncertainty on the credit transmission channel of monetary policy using a fixed-effects model with Chinese commercial banks as the research sample. The results showed that: (1) the tight monetary policy will restrain bank credit supply, whereas the accommodative monetary policy will promote banks to increase credit supply, and the impact of price monetary policy indicators is greater than that of quantitative monetary policy indicators; (2) economic policy uncertainty will weaken the impact of monetary policy on bank credit supply, thus blocking the transmission of this channel; this blocking effect is stronger in the expansionary period of monetary policy than in the tight period of monetary policy. The results show that reducing the uncertainty of economic policy is beneficial for the central bank to dredge the credit transmission mechanism of monetary policy.

關鍵字

Economic Policy Uncertainty ； Monetary Policy ； Commercial Bank ； Credit Supply

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