A structural investigation of the Chinese economy with a hybrid monetary policy rule

Abstract

Since about 2010, China has been experiencing a gradual and persistent slowdown in gross domestic product (GDP) growth, from an average of 10 per cent over the 30 years to 2010 to the latest figure, 6.6 per cent in 2018, making the latter the slowest growth rate for three decades. Chinese President Xi Jinping described this as the ‘new normal’ for the Chinese economy in May 2014. The slowing of China’s economic growth has attracted a great deal of attention from policymakers and scholars. The release of the official data on GDP growth often makes headline news around the world. The seemingly persistent trend of the economic slowdown triggered worries and speculation about further slowing, an..