October 26th, 2020

Discussion Paper 2020/5 is now available: El-Shagi, M. / Jiang, L. / Zhang, L..:  One Country - Two Monetary Policies: Evidence from a new indicator of the PBoC´s monetary policy support for poor regions


In recent years, one of the PBoC′s major issues was to avoid a generally conservative monetary policy that would jeopardize the central government′s poverty-alleviation strategy by limiting credit supply in rural areas where it is already scarce. We develop a range of new indicators to measure those aspects of the PBoC′s policy and demonstrate that the PBoC has successfully implemented policies targeted at poor counties. That is, we show that a central bank has the general potential to address regional diversity and distributional issues.