Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
Richard C.K. Burdekin
© 2017 Chuyi Sheng
The fast expansion of the shadow banking industry and its unregulated risks pose great challenges to the People's Bank of China. This paper uses the classic money multiplier and velocity models to investigate the impact of shadow banks on the effectiveness of monetary policies from 2006 to 2016.The time-series regression results show that shadow banks have a positive relationship with the velocity and a negative one with the multiplier. As the non-banks disrupt the traditional credit creation process and the central bank loses control of two important monetary indicators, the paper then discusses possible new intermediate targets and reforms that can alleviate the shadow banking problems.
Sheng, Chuyi, "The Impact of the Shadow Banking Industry on the Effectiveness of Monetary Policies in China" (2017). CMC Senior Theses. 1628.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.