On the Shock,Cost Channel and Inflation of Tight Monetary Policy:Evidence from China
通过引入成本渠道到DSGE模型，检验了中国货币政策传导中成本渠道的存在性，发现紧缩货币政策会通过提高企业财务成本在短期内推高价格水平，对央行制定最优货币政策有参考价值。
This paper examines the effect of aggregate supply via cost channel in monetary policy transmission. In this study,the authors develop a hybrid New Keynesianism Phillips Curve through introducing cost channel to DSGE,test the existence of cost channel,and then estimate the Phillips Curve using GMM approach.The empirical results show that:(1) cost channel exists in monetary policy transmission in China;(2 ) tight monetary policy will raise price level through increasing financial cost of firms in short term.Therefore,the central bank should not only consider the aggregate demand effect,but also should take into account aggregate supply effect in the design of optimal monetary policy.