The analysis of oil shock and monetary policy of China
- Resource Type
- Conference
- Authors
- Cong, Ronggang; Xiaohui Wang
- Source
- 2011 2nd International Conference on Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC) Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on. :5184-5186 Aug, 2011
- Subject
- Signal Processing and Analysis
Computing and Processing
Components, Circuits, Devices and Systems
Communication, Networking and Broadcast Technologies
Electric shock
Economic indicators
Mathematical model
Reactive power
Industries
Analytical models
oil price shock
monetary policy response
structural VAR model
- Language
Given the time series quarterly data of China from 1993 to 2006, we apply the SVAR model to analysis the effect of oil shock on GDP and price index of China and the monetary policy the government should take facing oil shock. The empirical result shows that the effects of oil shock on inflation and GDP are asymmetry, central bank can decrease the interests and put in currencies to regulate the macro economy.