Does Improving Business Environment Change the Effects of Monetary Policy?——Based on the NKQ-DSGE Model
This paper explores the relationship between business environment and the effect of monetary policy by con-structing an NKQ-DSGE model based on the principle of maximizing nominal profits of capital firms.First,we demonstrate that improving the business environment can reduce the adjustment costs of investment and enhance the transmission efficiency of Tobin Q channel.Second,the unobstructed of Tobin's Q channel enhances the effect of easing monetary policy on promoting growth,and increases the cost of tightening monetary policy in suppressing inflation.Third,improving the business environment and reducing investment adjustment costs significantly enhance the importance of the Tobin's Q effect on monetary policy.
business environmentmonetary policyTobin's QNKQ-DSGE model
NETL
NSTL
万方数据
