A Study On Reginal Effects Of Monetary Policy In China

Monetary Policy has become the major tool for government macro-economic control and played an important role in stabilizing prices and promoting economic growth. Because the level of economic development, industrial structure, financial structure, the degree of openness, market-oriented extent, etc of different regions in China are of great difference. Monetary policy is likely to have significant asymmetric effects across different regions. If the formulation and implementation of monetary policy fail to take regional economic into consideration, it will widen the regional economic disparities and impact the coordinated development of regional economies. At present, the theoretical research frame work of regional effects of monetary Policy has not been constructed and the empirical studies are still limited. Therefore, it is necessary to study regional effects of monetary policy and propose the strategic so promoting coordinated development of regional economies. Important role in stabilizing prices and promoting economic growth.In this paper, the monetary policy transmission mechanism as a starting point, the monetary policy transmission in China's regional differences in analysis of the causes. And the regional effects of monetary policy, the existence in our country carried out an empirical test. Paper text is divided into five parts. The first part is a literature review. The second part presents and analyzes the regional effects of monetary policy theory. The third part is the regional effects of monetary policy in the empirical test. The fourth part of the regional effects of monetary policy is explained. The last part is the conclusion and policy recommendations.