No. 1510 - The international transmission of Chinese monetary policy and the commodity channel

Temi di discussione (Working papers)
by Fabrizio Ferriani and Andrea Gazzani
December 2025
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This paper analyses the international transmission of Chinese monetary policy. Given China's growing importance in global commodity consumption, the paper focuses on the mechanisms through which these shocks propagate across commodity markets.

An unexpected change in China's monetary policy stance affects the country's financial conditions and domestic investment in raw material-intensive infrastructure. Globally, the shock transmits to international commodity prices and, through this channel, to output growth and inflation in other major economies. The impact is slower than that of US monetary policy shocks, suggesting a predominantly real rather than financial transmission channel.

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  1. 22 December 2025
    No. 1510 - The international transmission of Chinese monetary policy and the commodity channel
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