Financial Accelerator Effect Of China's Regional Financial Differences

From the the global financial crisis US triggered by subprime mortgage crisis,we can see the financial in all the world is already closely linked.Financial has become an important factor which must be taken into account when the national monetary policy is formulated.Due to the special historical reasons,the level of financial development in all regions of our country is quite different,which makes the central bank is difficult to estimate the degree of impact from monetary policy to the macroeconomic accurately,so it is difficult to regulate and control the monetary policy,The central bank mostly determined the enforcement power of monetary policy with experience when regulating macro economic. However, the result is some areas is "allergy" and other places is "numb" when they faced on the monetary policy.The paper quotes from current Fed chairman Bernanker proposed "financial accelerator" theory as the theoretical basis,We took the transmission of monetary policy in real estate credit market as the research object,and launched a careful empirical research basing on econometric models VAR.Through the empirical analysis,we can find that the financial accelerator effect exists obviously in the transmission of monetary policy in real estate credit market,and level of the financial accelerator effect is quite different in various regions.such as the the financial accelerator effect in eastern areas is lower than that in the western region.This indicates that the influence of the change in money supply growth rate is larger is greater than the impact of the eastern region.Namely,the country's western region is more sensitive to monetary policy.Through analysis of the empirical results,this paper argues that there are several reasons,First, the western region's economy and the eastern region gap is more and more big,it can be seen by the eastern region of GDP and the Midwest contrast; Second, financial institutions loans tend to east,that can be seen from financial institutions loans number and proportion;third, Chinese commercial Banks and branches of foreign Banks mainly establish in the eastern region. All of this cause to western region to the national monetary policy more sensitive than the eastern region.Through the above analysis,this paper puts forward some policy recommendations. For example when in policy in China shall carry out necessary area can be considered the monetary policy tool menas,Meanwhile considering strengthening policy support to the central and western regions financial.