01810cas a2200265 a 4500 AALejournalIMF018111 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484332160 1018-5941 BD-DhAAL BD-DhAAL Chen, Sophia. Credit and Fiscal Multipliers in China / Sophia Chen, Lev Ratnovski, Pi-Han Tsai. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (26 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 We jointly estimate credit and fiscal multipliers in China. We use the tenure of the provincial party secretary, interacted with the type of stimulus used in other provinces, to obtain separate instruments for provincial credit and government expenditure. We estimate a fiscal multiplier of 0.8 and a credit multiplier of 0.2 in 2001-2015. The multipliers have changed over time. The fiscal multiplier has increased from 0.75 in 2001-2008 to 1.4 in 2010-2015. The credit multiplier has declined from 0.17 to zero over the same periods. Our results suggest that reducing credit growth in China is unlikely to disrupt output growth, whereas fiscal policy may be effective in supporting macroeconomic adjustment. Mode of access: Internet Ratnovski, Lev. Tsai, Pi-Han. IMF Working Papers; Working Paper ; No. 2017/273 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/273/001.2017.issue-273-en.xml IMF e-Library