Sun narrative monetary policy index for China



Sun (2018) develops a narrative index to comprehensively measure the PBC's policy stance (Sun-MP index), based on the additional information on policy-makers’ intentions extracted from the PBC's documents. It is a five-value index on a quarterly basis. The policy stance of -2 stands for strong easing, indicating a strong emphasis on promoting real growth; 2 for strong tightening that indicates a strong policy emphasis on inflation reduction; -1 for easing and 1 for tightening, indicating mild emphases on real growth and inflation control, respectively; 0 for a neutral monetary policy stance.

The Sun-MP index measures the general monetary conditions in China from 2000q1 to 2019q4 on a quarterly basis, referring to the PBC's mandate - economic growth and price stability. It is updated regularly (every year). A comparable narrative index but that measures the PBC's policy actions to safeguard financial stability can be found in Klingelhöfer and Sun (2019) [Macroprudential Policy, Central Banks and Financial Stability: Evidence from China, JIMF 93: 19-41].

In use of the data, please cite:
Rongrong Sun (2018), "A Narrative Indicator of Monetary Conditions in China," International Journal of Central Banking, 14(4): 1-42.
Date made available1 Sept 2018
PublisherUniversity of Dundee
Temporal coverage1 Jan 2000 - 31 Dec 2019
Geographical coverageChina

Data Monitor categories

  • monetary policy indicator
  • narrative
  • China
  • A Narrative indicator of Monetary Conditions in China

    Sun, R., Sept 2018, In: International Journal of Central Banking. 14, 4, p. 1-42 42 p.

    Research output: Contribution to journalArticlepeer-review

    Open Access

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