Makram El-Shagi, Lunan Jiang, Lin Zhang

CFDS Discussion Paper 2020/5


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.

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