Empirical Research On The Regional Effects Of Monetary Policy In China's Transitional Period

Under the framework of aggregate demand and aggregate supply, this paper analyses the efficiency of monetary policy and their regional effects from four respects, namely, aggregate supply, aggregate demand, money demand and money supply. Then it particularly emphasizes the effects of regional economic and financial structures on the monetary policy transmission mechanism, the regional diecrepancies in the instrumental effects of monetary policy, and the construction of relative indexes used to measure the regional effects of monetary policy. In the end, it proposes some policies and measures towards the optimal monetary areas.The data analysis finds that in the transitional economy the uniform monetary policy can produce different effects across regions because of the differences of their economic structures, degrees of development, supply and demand, levels of consumption, characteristics of demands, environments of trust and investment, competence to handle risks , and preferences of the microeconomic subjects.This dissertation attempts to analyze the regional effects of China's monetary policy under the framework of mainstream economics by means of economics criteria and empirical approaches, especially the latter. In addition to descriptions and reasoning by logics, many other convincing methods are employed, such as diagrams and measurements.The originality of this dissertation is that it makes some progress in following two respects with reference to a variety of international and domestic theories regarding the regional effects of monetary policy as well as relevant literatures on the practices: 1) construct a complete theoretical framework for studying effects of monetary policy across regions from macro and micro perspectives; 2) analyze the regional effects of monetary policy by empirical approaches, and establish the corresponding index system for evaluation and other relevant indexes .No doubt, some deficiencies exist in the current study. For example, there is a lack of further empirical research about the game behaviores between local government and the central government, and between local government and the central bank, which might cause the regional effects of monetary policy. And there is no further analysis about the temporal and spatial asymmetry of monetary policy. Put in another way, this study does not further explore the relationships between the effects of monetary policy and the regional business cycles, and the dynamics of monetary policy.