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International market risk, monetary policy stance, and corporate financing: China’s economic recovery in the post-pandemic era
Journal of Combinatorial Optimization ( IF 1 ) Pub Date : 2023-08-07 , DOI: 10.1007/s10878-023-01072-z
Cheng-Ben Wang , Qian Zhong

In the post-pandemic era, the epidemic in China has been effectively controlled and the economy has entered the recovery stage. However, the situation abroad is still complex, which affects the world economy, and the international market is facing great uncertainty. Discussing whether and how an international market risk affects domestic economic recovery is of great significance. We construct an open DSGE model, including market risk shocks and corporate financing constraints. The increase in international market risk is adverse to domestic credit financing and affects enterprise credit demand and bank credit supply. An ultra-loose monetary policy amplifies the negative impact of an international market shock on credit. Using data on listed nonfinancial companies from the first quarter of 2007 to the second quarter of 2019 in China, we confirm the findings in the theoretical part. Finally, this study puts forward some suggestions to prevent international market risk and recover domestic economic vitality smoothly in the post-pandemic era.

更新日期:2023-08-07
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