A Study On Asymmetric Effects Of China Monetary Policy

Monetary policy is an important component of macroeconomic policies. It is an important means of macro regulation. Majority of scholars concern its effects. With the continuous deepening of research, economic scholars gradually reached a consensus that monetary policy is effective in the short term. In recent years, scholars pay attention to the asymmetric effects of monetary policy.To test the asymmetric effects of monetary policy, the paper summarized in the theoretical research of the asymmetric effects of monetary policy, and analyzed the course development of monetary policy. We use smooth transition vector error correction model including output, prices and monetary and general impulse response function methods to shed light on three questions:do positive and negative monetary shocks have asymmetric effects? do the effects of monetary shocks vary over the business cycle? do the effects of monetary shocks vary disproportionately with the size of the shock?The results showed that:output in high-growth state on the response of the monetary shocks significantly is higher than the low status. The response of the direction and impact of the size of shock will be significantly different; output and price in state of low growth fluctuate acutely, and become gradually stable six months later. They state reposefully changes in state of high growth.Finally, the paper tells us how to improve the effects of monetary policy. We require more economic theory and model to explain and test the asymmetric effects of monetary policy. As the mushrooming of macroeconomic datum and the development of the practice in monetary policy, we will be more comprehensive understanding.