On Asymmetry Of Monetary Policy In Our Country

The effectiveness of monetary policy is the prerequisite of the research on asymmetric effects of monetary policy. In other words, the asymmetric is out of the question if the monetary policy is lack of effectiveness.Broadly speaking, asymmetric effects of monetary policy has two aspects: (1) The effects of monetary policy in the direction of the non-symmetry, that is a quantitative measure of monetary policy targets, which means the same magnitude of expansion and contraction of the currency policies on economic growth have different impacts; (2) The effects of monetary policy in the economic cycle on the non-symmetry of the different phases of economic cycle, which means the same monetary policy has different effects on economic growth.Today, the researches of monetary policy at home and abroad in previous studies mainly focus on the intermediate targets in monetary policy, such as money supply, interest rates. However, combining with the results in previous studies and the practice in China, this paper has proved that asymmetry of monetary policy really exists in our country and explored where the monetary asymmetry exists.The smooth transition regression (STR) model is used to appropriately describe the reflection of the policy objectives affected by the shift of monetary policy, and the VAR model is also used to complement the additional information of the target, as the starting point of the research is the monetary policy tools and the ending point is the ultimate objective of the monetary policy.The empirical result shows that during the period of 2004 to 2009, the asymmetry effect of monetary policy really exists. In connection with the different monetary policy objectives, the asymmetry arises from different stages in the transmission process of the monetary policy. The characters of the monetary tools and the choice of the intermediation objectives are the factors causing the asymmetric effectiveness.