%0 Journal Article
%T Beggar-Thy-Neighbor? The Spillover Effect of EMU Nominal Negative Interest Rate Policy on China¡¯s Monetary Policy
%A Lisha Zuo
%J Journal of Mathematical Finance
%P 702-721
%@ 2162-2442
%D 2022
%I Scientific Research Publishing
%R 10.4236/jmf.2022.124037
%X We estimate international spillover effects of EMU nominal negative interest rate policy (NIRP) on China¡¯s Monetary Policy. Using a LT-TVP-VAR we find that an expansionary EMU shock has short-term effects on Chinese financial basic variables and final targets. It leads to a Euro exchange rate depreciation, Chinese interest rate¡¯ rise and decrease of Chinese output, while other variables¡¯ responses are not stable. NIRP in the Euro zone has the negative spillover effects on Chinese monetary policy mainly because of expenditure switching effect of trade channel.
%K EMU Nominal Negative Interest Rate Policy
%K Spillovers
%K China¡¯s Monetary Policy
%K Two-Tier System
%K LT-TVP-VAR
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=121137