Boyao Li

Boyao Li
China University of Political Science and Law | CUPL · Business School

PhD

About

8
Publications
2,332
Reads
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49
Citations
Introduction
I am interested in bank credit and money creation, macro-finance modeling, and bank regulations. My recent research concerns the roles of banks in the macroeconomy and impacts of Basel III regulations.
Additional affiliations
December 2017 - present
China University of Political Science and Law
Position
  • Professor (Assistant)
September 2013 - July 2017
Beijing Normal University
Position
  • PhD Student

Publications

Publications (8)
Preprint
Full-text available
When banks create credit and money endogenously, how do Basel III regulations affect the macroeconomy? This study develops a simple monetary circuit model based on the stock-flow consistent framework. It analytically solves for the equilibrium where banks comply with the capital adequacy ratio or net stable funding ratio. The growth rates can decom...
Preprint
Full-text available
I develop a banking model to examine the effects of government expenditures on the credit and money supply under Basel III regulations. Purchases of goods and services from real firms or transfer payments to households as conventional government expenditures (CGEs) inject reserves into banks. Purchases of equity from banks as unconventional governm...
Preprint
Full-text available
Both equity and regulation play key roles in determining the ability of credit creation of banks. The equity endogenously varies while the regulations are exogenously imposed. I propose a banking model to investigate how the changes in bank equity due to interest receipt and expenditure affect credit and money creation under the Basel III regulatio...
Article
We develop a stock-flow consistent model to describe a macroeconomic system consisting of households, firms, the government, the central bank, and banks. The framework is based on the balance sheets of all sectors, in which the monetary flows between them govern the dynamics of the items. The whole system evolves over time and eventually attains a...
Article
The fractional reserve theory of money creation only considers the reserve requirement but ignores prudential regulations. We study the impacts of four prudential regulations under the Basel III framework on the commercial bank's ability to create money. Using a balance sheet approach, we formulate the corresponding maximum money multiplier under e...
Technical Report
Full-text available
Commercial banks across the world have been implementing the Basel III accord, which is the most important international response to the 2007-2008 financial crisis. Particularly, the Liquidity Coverage Ratio (LCR) introduced by the Basel III accord is the first global standard for banking liquidity management. Does this requirement work? And what m...
Article
Full-text available
This paper examines money creation process of the banking system when it is complying with the Liquidity Coverage Ratio (LCR). A stock-flow based dynamic model of credit creation process is developed in which the commercial bank supplies loans to the firm. The change of credit is governed by the bank lending and the repayment of the existing loans,...

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