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| Is the “Epidemic Subsidy” Policy Applicable to China’s Economy？——A Comparative Analysis Based on Quantitative and Price-based Monetary Policy |
| Wang Sheng Zhao Haoquan |
| (School of Economics and Management， Wuhan University， Wuhan 430072) |
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Abstract In 2020， the COVID-19 swept the world and caused severe damage to China’s economy. A comparative analysis of the impact of price-based monetary policy with interest rates reduction and quantitative monetary policy with money supply improvement on China’s macro economy in this situation can provide reference for the selection of monetary policy measures under the impact of the pandemic. The research shows that whether it is under the stimulus measures during the economic recession or in terms of the stabilization effect on the macro economy after the pandemic worsens the situation， the quantitative monetary policy with the adjustment of money supply performs better. The results of counterfactual experiment show that in the new situation， the adjustment of monetary policy rules should change in accordance with the circumstances. That is， for the purpose of restoring production capacity and revitalizing the economy as soon as possible， policy tools should be more responsive to the changes of the inflationary level； for the purpose of stabilizing economic fluctuations， policy tools should be more responsive to the changes of output gap.
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Received: 22 November 2021
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2021, Vol. 60 
