Study Of Regional Differences In The Effects Of Monetary Policy

China' s economy development has made noteworthy achievements since the reform and open policy, but at the same time the level of economy development between regions is widening. Generally speaking, the level of economy development from east to west has followed the trend of decline, there are three major economical regions named area-eastern, middle area and area-west. Differences in the level of economy development will inevitably result in financial development non-balanced of regions. Comparing the financial total quantity, structure and efficiency,the middle and western area all by far falls behind the eastern area. The difference of economy and finance in a region will cause the regional effect of unified monetary policy .On the one hand, the effect of monetary policy will be influenced by many factors such as the level of economy development, financial environments, the state of main micro-conduction and so on, therefore the different level of economical finance development in regions inevitably create the differences of monetary policy' s transmission mechanism, consequently lead to the problem that the same monetary policy effects have regional differences; On the other hand, our country has been taking the same monetary policy for a long time, perform the non-discriminatory monetary policy tools, moreover the sole monetary policy formulation often take the economical developed area economical movement as a reference system, however , different area' s economic development cycle is different , especially the regions of economical developed and undeveloped, cause the different effect in each regions.Since 2002 , in order to prevent China' s economic growth to overheating, people' s Bank issued a series of tight monetary policy but the implementation results is unsatisfactorily , there are greater differences of policy effects in different areas, not only achieve the desired policy goals, also objectively exacerbate imbalanced development of ecomomy between China' s regions, it' s detrimental to the coordinated development of China' s macroeconomy.This paper choose Zhejiang province of eastern area and Henan province of middle area as an example, analyzing the two provinces ' s monetary policy effects since 2002, and from the four aspects of credit, consumption, investment and net exports, realized that there are objective differences of monetary policy' s effects between the two provinces. And analyzing the reasons which caused the differences effect of monetary policy, pointed out that the gap of regional economic development degree was the fundamental reason which influenced monetary policy' s effects. The differences of economic and financial development will affect the efficiency of monetary policy transmission mechanism , as well as the implementation effect of monetary policy tools, thus leading to the regional differences in the effects of monetary policy, then carry out specific analysis from the four aspects of economic development level,financial development level, the monetary policy transmission mechanism and the monetary policy tools. The last part researched the measures which could reduce the regional difference of policy effect, finally achieve the policy goals that narrow the development gap between regions and promote coordinated development of regional economy.