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Demographic structure and monetary policy effectiveness: evidence from Taiwan

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  • Wen-Yi Chen

    (National Taichung University of Science and Technology)

Abstract

This study applies the time-varying parameter VAR and fully modified OLS cointegrating regression models to investigate the effect of demographic change on monetary policy effectiveness in Taiwan. Our results demonstrated that monetary policy effectiveness is negatively correlated with shares of total population in children (age

Suggested Citation

  • Wen-Yi Chen, 2017. "Demographic structure and monetary policy effectiveness: evidence from Taiwan," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(6), pages 2521-2544, November.
    • Handle: RePEc:spr:qualqt:v:51:y:2017:i:6:d:10.1007_s11135-016-0407-1
    DOI: 10.1007/s11135-016-0407-1
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    2. Qifa Xu & Lu Chen & Cuixia Jiang & Yezheng Liu, 2022. "Forecasting expected shortfall and value at risk with a joint elicitable mixed data sampling model," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(3), pages 407-421, April.
    3. Tan, Zhengxun & Tang, Qianqian & Meng, Juan, 2022. "The effect of monetary policy on China’s housing prices before and after 2017: A dynamic analysis in DSGE model," Land Use Policy, Elsevier, vol. 113(C).
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    5. Cheng, Xiaoqiang & Wang, Yabin, 2022. "Shadow banking and the bank lending channel of monetary policy in China," Journal of International Money and Finance, Elsevier, vol. 128(C).
    6. Ya-Ling Lin & Wen-Yi Chen & Shwn-Huey Shieh, 2020. "Age Structural Transitions and Copayment Policy Effectiveness: Evidence from Taiwan’s National Health Insurance System," IJERPH, MDPI, vol. 17(12), pages 1-17, June.
    7. Shieh, Harrison, 2024. "Can you hear me now? Identifying the effect of Chinese monetary policy announcements," Journal of International Money and Finance, Elsevier, vol. 144(C).
    8. Li, Weixue & Wang, Sipei & Cheung, Adrian (Wai Kong) & Xu, Changsheng, 2024. "Shadow banking, investment and interest rate transmission: Evidence from macroprudential policy in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 115-133.
    9. Chen, Hongyi & Tillmann, Peter, 2021. "Monetary policy uncertainty in China," Journal of International Money and Finance, Elsevier, vol. 110(C).
    10. Soyoung Kim & Hongyi Chen, 2022. "From a Quantity to an Interest Rate‐Based Framework: Multiple Monetary Policy Instruments and Their Effects in China," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(7), pages 2103-2123, October.
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    More about this item

    Keywords

    Demographic change; Monetary policy; Population ageing; Time-varying parameter VAR model; Fully modified OLS model; Taiwan;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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