The Research On The Region Effect Of Monetary Policy Based On The Perspective Of The Regional Differences In Financial Structure

Monetary policy is the main instrument for the State to control the national economy in China. Monetary policy implementation should have a uniform effect through the whole nation. But the practice of monetary policy is actually facing a conduction process constituted of multitudinous links and factors. Financial structure is an important factor in the conduction process. At present, regional differences in financial structure are growing among the eastern area, central area and western area. Neglecting the regional differences in financial structure and implementing a unified monetary policy may weaken the overall performance of monetary policy.This article selected the regional differences in financial structure as a research perspective to study the regional effect in the course of monetary policy transmission. In this passage the regional financial structure is divided into regional financial institution structure and regional financial market structure. On this basis, the article studied the impact of the regional differences in financial structure on the effects of monetary policy transmission. We can draw the conclusion from the theoretical analysis as bellows:Financial institutions and financial markets are the basis for monetary policy transmission; financial institutions and financial markets among the eastern area, central area and western area have some differences in size, behavior and efficiency and this will cause the regional different effects of the monetary policy. With the theoretical analysis, we makes empirical examines of the regional different effects of monetary policy transmission by using VAR model and impulse response function. The results showed that the regional different effects in the course of monetary policy transmission did exist. At last, this article brings forward some policy advices on the monetary policy adjustment and optimization of the financial structure of central and western regions. We think that we can implement moderately differentiated regional monetary policy to promote coordinated regional economic development in the short term. In the long term, we need to optimize the financial structure of central and western regions by using policy support and market-oriented measures in order to guide towards the regional integration of economic and financial step by step, ultimately achieve the relative homogeneity and balance of the country's overall economic development and create conditions for the effective implementation of a unified monetary policy.