The Two-Pillar Policy for the RMB
实证发现中国央行通过市场与货币篮子两个支柱平衡汇率灵活性与人民币指数稳定，并纳入逆周期因子；理论构建灵活价格货币模型解释该政策的内生最优性，用广义矩估计评估政策权衡。
ABSTRACT This paper studies China's recent exchange rate policy for the renminbi (RMB). We demonstrate empirically that a two‐pillar policy is in place, aiming to balance exchange rate flexibility and RMB index stability via market and basket pillars. We further extend and validate the formulation that incorporates the so‐called countercyclical factor. Theoretically, we develop a flexible‐price monetary model for the RMB in which the two‐pillar policy arises endogenously as an optimal response of the government. We estimate the model by generalized method of moments and quantitatively assess various policy trade‐offs.