A working paper published by the Bank of Finland takes a detailed look at one of the unconventional monetary policies used by the Chinese central bank. In To guide or not to guide? Quantitative monetary policy tools and macroeconomic dynamics in China, Hongyi Chen, Michael Funke, Ivan Lozev and Andrew Tsang look at the "window guidance" used as a monetary policy tool by the People's Bank of China. The authors outline the use of window guidance, or lending quotas, by the Chinese central bank.
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