A Study On Regional Effects Of Monetary Policy In China

Monetary police refers to all kinds of instrument and measure in the field of currency credit from the central bank to realize a specific target and the stable situation of the economy. The general research accepts that a monetary police will have the same effect in the assumption of the economy homogeneity, however, the economic assume can not be applied to the real economy. Even in a country, there is a great difference in micro-economic agents in different regions, so a monetary measure would have to face the possible regional non-symmetry. Specificly in china, in the course of economic development, the regional non-symmetry is growing. The regional micro-economic agents have obvious difference, which make the monetary policy inevitably face the regional non-symmetry in conduction process formed by a large number of links and elements. And the expected goal of the monetary policy is undoubtedly undermined.Under the background, this paper attempts to make s study on regional effects of monetary policy in China. Monetary policy transmission channel is generally divided as currency transmission channel and credit transmission channel, and this paper focuses on regional differences of credit transmission channel and gives some suggestions about it.From the perspective of transmission mechanism of monetary policy, this paper combines specification analysis and empirical analysis in regional differences in monetary policy and this paper focuses the regional difference of the two type micro-economic elements, banks and enterprises, which explains the regional effects of monetary policy in the view of credit transmission mechanism. At the end, this paper gives some suggestions to smooth monetary policy transmission channels and cover economic and financial differences between regions.Specificly, the preface discusses research background and significance, introduces the situation of regional effect of monetary policy at home and abroad and the basic ideas and research method of this article.Then, from two aspects of the theory of optimum currency areas and theory of monetary policy transmission, this paper introduces the theoretical basis of regional effects of monetary policy.The next chapter is the empirical test, according to "the strategy and policy for coordinated development of areas " (June 2005, released by the State Council Development Research Center), this paper divides the whole state into four major economic sector, and finds the appropriate statistical model variables and empirical measurement to observe of regional differences in monetary policy transmission.The subsequent analysis is the reasons of the regional effect, and based on the empirical results in the previous chapter, explains the reality of the main channel, the credit transmission mechanism, and analyses differences between agents of credit transmission channel.The final chapter, based on smoothing transmission channel of monetary policy, tries to give some suggestion to deal with the regional effects of monetary policy and benefit the regional macroeconomic development with the reality of regional economic differences.In summary, this paper mainly uses VAR model, from the perspective of the credit transmission mechanism of monetary policy, to analyze regional effects of monetary policy in China and put forward corresponding countermeasures and suggestions to improve the effectiveness of a unified monetary policy, and to achieve macroeconomic regulation targets.