Template-Type: ReDIF-Article 1.0
Author-Name: Laura Komlóssy
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: komlossyl@mnb.hu

Author-Name: Gyöngyi Körmendi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: kormendigyo@mnb.hu

Author-Name: Sándor Ladányi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: ladanyis@mnb.hu


Title: The Road to a Market-Oriented Monetary
Policy and the “New Normal” Monetary
Policy Regime in China

Abstract: Over the past decades, China has implemented a series of economic reforms, as
a result of which it progressed in successive stages from a centrally planned economy
system to a market economy system. As part of this process, both the framework
and the toolbox of monetary policy changed in line with the prevailing economic
systems. Our paper describes this evolution from the emergence of the two-tier
banking system onwards, with particular focus on the post-2008 reform process,
which involved the establishment of the current framework operating within the
“New Normal”. This new framework copies a number of monetary policy elements
commonly occurring in developed market economies, while it also has unique
characteristics that reflect the specific features of the country. On the one hand,
these bear the marks of earlier monetary policy regimes, while on the other hand,
they may also be conceived of as means of adapting to new challenges: certain
tools which previously were of a purely monetary policy nature have taken on a new
meaning within China’s new economic system as tools of macroprudential policy,
a new area emerging in the aftermath of the crisis of 2007–2008.

Classification-JEL: E42, N15
Keywords: monetary policy toolbox, macroprudential policy, China, “New Normal”,
People’s Bank of China
Pages: 101–125
Volume: 16
Issue: Sepcial Issue
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/laura-komlossy-gyongyi-kormendi-sandor-ladanyi.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:SpecialIssue:p:101-125