In the first half of September 2014 it was estimated that China's PBC lent the five largest Chinese banks around RMB 100 billion to spur slowing economic growth.
a. Using some economic model discussed in this chapter explain how this policy is intended to have an impact on the real economy.
b. Because the injection of high-powered money came not through open market operations but through some of the other monetary policy tools (such as discount window lending) discussed in this chapter, Western economists criticized the move as a step backward in terms of financial market liberalization in China. Discuss.

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The Answer of In the first half of September 2014 it was estimated that China's PBC lent the five largest Chinese banks around RMB 100 billion to spur slowing economic growth.
a. Using some economic model discussed in this chapter explain how this policy is intended to have an impact on the real economy.
b. Because the injection of high-powered money came not through open market operations but through some of the other monetary policy tools (such as discount window lending) discussed in this chapter, Western economists criticized the move as a step backward in terms of financial market liberalization in China. Discuss.

In the First Half of September 2014 It Was Estimated