01854cas a2200253 a 4500 AALejournalIMF011312 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463904937 1018-5941 BD-DhAAL BD-DhAAL Porter, Nathan. Understanding Chinese Bond Yields and their Role in Monetary Policy / Nathan Porter, Nuno Cassola. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students China's financial prices are informative enough for the PBC to introduce a monetary policy framework centered around interest rates. While bond yields are not fully efficient?reflecting regulation, liquidity, and segmentation?we find they contain considerable information about the state of the economy as well as evidence of an emerging transmission channel: changes in PBC rates influence the structure of Treasury, financial, and corporate bond yield curves, which are then associated with changes in growth and inflation. Coporate spreads are also a leading indicator of growth and inflation. While further liberalization will strengthen both efficiency and transmission, several necessary elements to move towards indirect monetary policy are already in place. Mode of access: Internet Cassola, Nuno. IMF Working Papers; Working Paper ; No. 2011/225 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/225/001.2011.issue-225-en.xml IMF e-Library