Based on an observation of the recent adjustment frequency of the Loan Prime Rate(LPR)in China,this paper first estimates the adjustment cycle of the LPR,revealing the fundamental facts regarding its adjustment frequency.It then innovatively proposes and constructs a dynamic stochastic general equilibrium(DSGE)model that incorporates LPR adjustment frequency and monetary policy,discussing the impact of this frequency on the effectiveness of monetary policy implementation.The model also examines the macroeconomic dynamics and the characteristics of"government-business"default risks under constrained shocks on both supply and demand sides due to varying loan quote stickiness.Finally,the theoretical implications of the LPR adjustment frequency are analyzed from the perspectives of economic fluctuations and social welfare costs.The research finds that increasing the adjustment frequency enhances the efficiency of monetary policy implementation and reduces corporate default risks.However,when the economy faces supply-side shocks,a higher adjustment frequency amplifies the recessionary effects of negative productivity shocks and leads to increased corporate default risks.Conversely,in the context of demand-side shocks,a higher adjustment frequency results in more significant reductions in credit rates,thereby buffering against macroeconomic downturns,demonstrating the state-dependent nature of LPR adjustment frequency's impact on the economy.The analysis of social welfare costs reveals a similar pattern,while an increase in adjustment frequency leads to social welfare losses under supply uncertainty,it significantly improves social welfare in the face of demand uncertainty.The conclusions of this research provide a theoretical foundation for the timely and frequent adjustment of loan market pricing rates.
维普
万方数据