On Asymmetry Of Monetary Policy In Our Country

The research on asymmetry of monetary policy is the extension of the study on validity of monetary policy, which is the basis of the asymmetry of monetary policy.The purpose of the research on asymmetry of monetary policy is to investigate whether the effect of monetary policy is accordant or not when using one specified monetary policy tool in the same degree while in the opposite direction. When the effect is accordant, it is considered to be symmetric, otherwise it is asymmetric .Combining with the practice in China , this paper tries to prove that asymmetric effectiveness of the monetary policy exists in our country by demonstration method and probe into the reason of monetary asymmetry from the starting point of the monetary policy transmission , that is , explore where the monetary asymmetry exist .Considering the starting point of the research is the monetary policy tools, and the ending point is the ultimate objective of the monetary policy, the paper introduces smooth transition regression (STR) model to appropriately describe the reflection of the policy objectives affected by the shift of monetary policy. As the STR model is unusual, the paper elaborates the principle of the STR model applicable to the study of the asymmetry of monetary policy, and it involves the author's own understanding. Except the STR model, the paper also use the the impulse-responses based on VAR model to compare the positive reflection towards the monetary policy with the negative one in the process of the transmission of monetary policy for the sufficiency of the demonstration results. Lastly, the paper also evaluates the two methods.The result of the demonstration shows that, asymmetric effectiveness of the monetary policy exists in our country to some extent .It can be traced back to each stage of the monetary policy transmission. Combining with the practice of our country, it can be known that, the asymmetry of monetary policy has relation with the choice of the intermediation objectives. Besides, it also has relation with characters of the monetary policy tools. All in all, its essential reason is the problem of the system of our country.