Fabrizio Ferriani Andrea Gazzani
Chinese monetary policy significantly affects global economic activity and inflation through a real transmission channel that crucially propagates via commodity prices. This column shows that the intensive use of commodities in Chinese infrastructure investment explains the strong yet delayed response of industrial metals and energy prices. A sizeable portion of inflationary spillovers to foreign countries (about 70% for advanced economies) is directly transmitted via commodity prices due to dependence on commodity imports. Financing conditions in commodity-exporting emerging economies are also greatly affected by the commodity channel of Chinese monetary policy.
Πηγή: Voxeu