An Analysis of Financial Stress in the Chinese Economy: A TVAR Approach
In this paper, we look to develop understanding of the nature and potential impact of financial stress and fiscal shocks in the Chinese economy, examining how such stress spreads through the economy and how monetary policy can exaggerate or mitigate the resultant effects. In order to do so, we construct a TVAR model on Chinese quarterly data. To achieve that we develop a financial stress index com
