The Transmission of U.S. Monetary Policy Shocks to the China’s Output and Inflation: An Empirical Analysis

Weiguo XIAO, Yang ZHAO


We employ the SVAR model to examine the impact of U.S. monetary policy shock on the Chinese real output and inflation. Our main result shows that the effect of transmission of short-term international capital flows is stronger than the balance of trade and the world commodity prices index. The exchange rate of RMB has the weakest transmission effect. Expansionary monetary policy shocks of the United States will increase real output and consumer price index of China and the United States; but the U.S. real output growth is higher than that of China; China’s consumer price index rise higher than that of United States. Based on this, China should gradually adjust economic growth model, increased the per capita disposable income and strengthen regulate the speculative short-term international capital flows.

Key words: Monetary policy shock; Transmission channel; SVAR model; Impulse response


Monetary policy shock; Transmission channel; SVAR model; Impulse response

Full Text:




  • There are currently no refbacks.

Copyright (c)

Share us to:   


  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.

We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:;;

 Articles published in International Business and Management are licensed under Creative Commons Attribution 4.0 (CC-BY).


Address: 1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.
Telephone: 1-514-558 6138 
Website: Http:// Http://

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures