The Study Of The Regional Difference Of The Unified Monetary Policy In China

â… . The research approach in this paper The unity of the monetary policy is the logical starting point in this article, and the required terms of executing the unified monetary policy will be found through analyzing the concept of the unity. 'The Theory of Optimal Currency Areas' will then be adopted to examine the conditions which the present policy should be meet, so the conclusion will be made that the unified monetary policy is not suitable in our country now. On the base of the conclusion, the regional financial model can be built and the regional monetary multiplier can be derived on the according to the theory about the monetary policy effecting the regional economy, and the Model which could be used to demonstrate optimal choose of the monetary policy in our country can be made on the foundation of the Barro-Gordon Model. On the base of the above analysis, it is necessary that the monetary policy should be different in different regions on the conditions that the unity of the policy should not be broken. After the necessity is demonstrated, the conclusion that the regional difference of the monetary policy is feasible at present can be made through the comment on the present system of the People's Bank of China (the PBC) and the monetary tools. At the same time, the concerned suggestions will be proposed to improve the regional different policy. â…¡. The content and conclusion of this paper There are three parts in this theme: â…°The unified monetary policy and its problems in our country. Though analyzing the theory about the unity of the monetary policy and testing the current economic situation in different regions, it is not suitable to execute the unified monetary policy at present, and it is necessary to put forward the problem of the regional difference. â…±The necessity analysis of the regional different monetary policy. On the base of the survey about the effect of monetary policy on the regional economy, the regional financial market and the regional monetary multiplier are analyzed, and the model of the optimal monetary policy is also built according to the Barro-Gordon Model in this part. Then that the unified monetary policy should be regional difference is proved to be necessary at the end of this chapter. â…²The possibility discussion of the regional different monetary policy in our country. The present system of the PBC which assure the regional different framework and some of the monetary tools which can be executed differently in different regions demonstrate that it is possibility for the PBC to take the regional different monetary policy in our country. It should be realized that the regional difference must meet the regional economic conditions and market rules in essence so as to promote the national economic growth, so the relation between the nation and the region should be dealt with when the policy is performed. The conclusion of this paper: The fact that there is remarkable difference in the regional economy accounts for the high performing cost of the present policy, so on the condition of insisting on the unity of the present policy the branch bank of the PBC should be titled more power to establish the monetary policy according to the regional economy in order to reach the goal of the PBC. â…¢. The contribution of this paper Firstly, the unity of the monetary policy is the logical starting point in this article, though which the real economic conditions is examined; secondly, the regional multiplier is analyzed according to the regional economy in our country, thirdly, the problem of the optimal monetary policy is demonstrated on the base of Barro-Gordon Model; fourthly, my own suggestions are put forward to improve the present system andstrengthen the function of the branch bank of the PBC. In a word, with the gains from studying three-year experience in SWUFE, I want to try my best to probe into the problem that the unified monetary policy should be regional different in our country. But there must be some errors in this paper because of the restriction of my knowledge...