The Study On Regional Difference Of Monetary Policy Effect In China

The effect of monetary policy has been one of the hot spots in the fields of economics, but most of the researchers chose the macro-perspective and studied in the establishment of economic and financial assumptions of homogeneity, and didn't pay enough attention on the different effect of monetary policy on the regional differences. China's vast area and unbalanced development of the nation determines the different regional economic development level of financial and economic structure, and have important reaction of the conduction of monetary policy, so the same monetary policy in different regions may have different effect. This article is based on China's current reality that have big differences in regional economic and focus on the different regional effect of monetary policy. Firstly analysis the various conduction channel of the monetary policy by means of using modern monetary theory, point out that the conduction channel of China's monetary policy still rely mainly on credit channel, and advance the arguments that the different regional effects of China's monetary policy are significant. Secondly, from the perspective of the credit channel system including the environment of conduction, the intermediary of conduction, the credit behaviors of micro-individualities and contradictions between of the credit demand and supply of funds, in-depth study the situation and the reasons of regional differences in monetary policy. thirdly, carry the empirical studies from establishing a micro-index system ,then use principal component analysis of each indicator that the weight of each region and the combined score, make sure the region effect of China's monetary policy existence ,the effect of monetary policies in the eastern is stronger than in the central and western regions t; further proof banking dependence and the development of capital market ,the environment of monetary policy conduction, economic structure and development of banking are the main influence factors. Finally, based on these factors try to make policy recommendations to help reduce the regional effects of monetary policy in China.