Abstract
IMF Country Report No. 23/81
Copyright Page
IMF Country Report No. 23/81
PEOPLE'S REPUBLIC OF CHINA
SELECTED ISSUES
February 2023
This Selected Issues paper on the People’s Republic of China was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed on December 19, 2022.
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© 2023 International Monetary Fund
Title page
PEOPLE’S REPUBLIC OF CHINA
SELECTED ISSUES
December 19, 2022
Approved By
Asia and Pacific Department
Prepared by a team led by Helge Berger with individual chapters authored by Anne Oeking, Henry Hoyle, Natalija Novta (all APD), Wenjie Chen (AFR), John Ralyea (FAD), Fan Zhang (RES), Phakawa Jeasakul (Resident Representative in Hong Kong SAR).
Contents
RECALIBRATING THE COVID STRATEGY
A. Introduction
B. Experiences from Other Countries
C. The Economic Cost of the ZCS
D. The Health Cost of a Sudden Lifting of All Containment Measures
E. Preparing for the Gradual Lifting of Remaining Restrictions
F. Conclusions
APPENDIX
I. Data and Empirical Analyses
References
SHORT-TERM FISCAL MULTIPLIERS IN CHINA
A. Fiscal Multipliers
B. The “Bucket” Approach to Estimating the Overall Multiplier
C. A Model Simulation of China’s Fiscal Multipliers by Fiscal Instrument
D. Conclusion
References
MONETARY POLICY AND THE ROLE OF CREDIT POLICIES
A. Introduction
B. Monetary Policy Transmission and the Role of Quantity-Based Policies
C. Methodology and Data
D. Empirical Results
E. Policy Implications
F. Conclusion
APPENDIX
I. Additional Empirical Results
References
MARKET REFORMS IN CHINA’S POWER SECTOR
A. Introduction
B. Brief History and the Challenges of China’s Power Market Reforms
C. Power Market Reforms to Increase Efficiency
D. The Importance of Power Market Reform for China’s Climate Ambitions
E. Policy Implications
References
BOXES
1. The Impacts of Intensity Targets on Climate and Energy
2. China’s Power Crunch of 2021
FOSTERING THE DEVELOPMENT OF CLIMATE FINANCE
A. Introduction
B. China’s Green Finance Landscape
C. China’s Policy Initiatives on Green Finance
D. Enhancing Market-oriented Climate Finance
E. Managing Climate-Related Financial Risks
F. Conclusion
References
FIGURES
1. Green Finance Landscape
2. Selected Characteristics of Green Finance
3. Selected Characteristics of Green Bonds
SUSTAINABLE AND BALANCED GROWTH IN THE LONGER TERM
A. Introduction
B. Background
C. Approach and Historical Decomposition
D. Forecast Scenarios
E. Conclusion
References