Empirical Research On The Regional Effect Of Monetary Policy In China Based On DEA

Monetary policy is the main tool to regulate and control macro-economy for Chinese government, which plays important role in the promotion of economy growth. However, Chinese monetary policy has different impact on regional economy for the difference of economy growth level, financial & industrial structure, openness, and so on. With the lack of consideration of regional factor, the formulation of monetary will enlarge the gap between economy development of different region. Analyze the regional impact of monetary policy, which is the basement of effective monetary policy formulation, has important theoretical and practical significance.First, this paper summarize and analyze the relative research of regional effect of monetary policy. Then the mechanism of regional effect, development and imbalance of monetary policy is researched. Considering that the regional effect can be assessed as input and output of data, this paper construct new DEA model based on traditional DEA model to analyze the regional effect of monetary policy in China. According the affecting process of monetary policy, the money supply, credit scale in the transmission of monetary policy are set as input indexes, and GDP, PPI are set as output indexes. Then according the eastern, middle, western and northeastern data, this paper analyze the regional effect of monetary policy in China based on the DEA model. Research result shows that there is regional effect of monetary policy in China, which is different in corresponding years. Finally, this paper proposes some relevant policy recommendations about regional effect of monetary policy in China as well.