The Effects Of Monetary Policy Across Industries In China

As one of the important means of national macroeconomic regulation, Monetary policy is playing a more and more important role in keeping the equilibrium of the money and promoting the the rapid and healthy development of national economy. When the central bank regulates, the same policy cannot attain the same effect. Why are some industries more sensitive to monetary policy than the others? In other words, Why the single policy can produce the asymmetric effects across the industries.Traditional theory believes that monetary policy is a total adjustment of tool and it have a general impact on economy.This view ignores the structure differences of economy. There are significant differences across industries and the differences may lead to the asymmetric effects of monetary policy. So on the basis of previous frameworks, this article is trying to research the reason and mechanism of the industrial effect of monetary policy from the perspective of credit channel. On the one hand, we can prompt the research of structure effect of monetary policy, on the other hand, we can also enrich and improve the existing theory of monetary policy.First of all, this paper argues that the asymmetric effects of monetary policy across the industries is essentially the problem of the asymmetric effects of monetary policy. The research of the asymmetric effects of monetary policy can divide into three parts:the cyclic effects of monetary policy, regional effects of monetary policy, and industrical effects of monetary policy. On the part of the literature review, we review the research on the asymmetric effects of monetary policy and on the basis of the formers, we confirm research thought and method; Secondly, we make a further review about the theory of the transmission mechanism of monetary policy to lay the theoretical foundation for the article.We also review the empirical research of transmission mechanism of monetary policy in our country and most of the research indicates that the credit channel is the primary channel in China. Based on this, combined with Chinese actual conditions, we analyze the financial environment from the perspective of bank Advantage and the loan substitution to lay the realities for the article; Thirdly, on the basis of credit channel, we establish the theoretical model to analyze the reasons of the industrical effects of monetary policy from the perspective of bank lending channel,financial accelerator channel, business credit channel; Fourthly, we build the dynamic panel data model, Vector autoregression model and we use the granger causality test, impulse-response function et al to verify this hypothesis, Then, We apply our framework to specific industries, This not only can verify our analysis framework, but also make me grasp the channels of monetary policy impact on industry. Finally, we summarize the research conclusions and gives some proposals from the perspective of Bank Lending Channel, financial accelerator channel. business credit channel and central bank.Through the Research, We can get the following conclusion:The results show that the asymmetric effects of monetary policy across industries do exist in our country and the Monetary policy can affect industry through bank lending channel,financial accelerator channel and business credit channel. the industry financial leverage level and industry market power are main reasons of the industry effect of monetary policy.Compared with the previous studies, the contribution of this paper is mainly on the research of systemic, mechanism of comprehensive and perspective of innovative. First of all, Considering the monetary policy system of China is different from the typical market economic countries, in our country, financing dominated by bank loans. The bank credit is the main form of the social credit allocation and its also the main transmission channels of monetary policy. So we analyze the reasons of the industrical effects of monetary policy from the perspective of bank lending channel, financial accelerator channel and business credit channel and we build the empirical model to verify this hypothesis. Secondly, in addition to the bank credit and financial accelerator channel, we found that the business credit between enterprises is an important implicit way to transmit the monetary policy. Unlike study abroad, we argues that when credit tightening, not only the big companies will not provide funding for small businesses, but also it will pass on funds pressure to the small businesses from the business credit channel by using the advantage of market power and negotiation ability. Business credit in China will not have the effect of absorbing the shock of the monetary policy, on the contrary, it increases the fluctuations of monetary policy and causes the industry effect of monetary policy.