Research Summary
Balance-Sheet Constraints
Examine the tension between monetary-policy direction and balance-sheet adjustment, with attention to the conditions governing dollar liquidity.
Cross-Market Transmission
Consider dollar funding conditions alongside China’s policy response to study the relationship between currencies, liquidity and RMB asset pricing.
Paths & Counter-Evidence
Consider path dependence in policy and compare alternative scenarios, including conditions that could alter or invalidate a research view.
Assessment & Limitations
The paper examines how policy constraints change the conditions of asset pricing. Potential opportunities are considered alongside liquidity, implementation and risk limits. This page summarizes the paper’s themes; the original sets out its arguments, assumptions and scope.