A Study On Regional Effects Of Monetary Policy In China

Monetary policy, as a very important means of macro-control, is a sum of various measures for a particular economic target, in the filed of currency credit. At present, our country implement unify monetary policy, the advantage of it is that, it can regular the macro-economy at the aggregate level, China different areas, the economy circumstances,the financial depth,the financial width,the foundation of the monetary policy is very different, so inevitably there will be a cause of regional difference of monetary policy, named the regional of monetary policy. The regional effects can eventually lead to an asymmetric impacts in different areas, restrict the achievement of monetary policy. The research on this issue mainly concentrated in the developed country, such as Euro and the United States, our country is a regional diversity country, study on regional monetary policy to improve the effectiveness of monetary policy has important significance.According to the eleventh five-year plan, this article selects the 1978—2008 annual data of 31 years, chose the East coast economic area, the Northeast economic area and the Southwest economic area of the division of the eight areas. We use the methods combination of theoretical with empirical study to research the monetary policy's regional affection. First the article discussed the two theories in regional effects of monetary policy, the optimal currency theory and monetary policy transmission mechanism theory, and then compared the two theories, and chose the transmission mechanism theory to make the study. Through analysis the status of transmission mechanism in China, We find the credit channels are the main transmission channel. So, we study the monetary policy transmission of credit channels for empirical research in the model of VAR, the results show that the monetary policy really exist regional effects in our country. Then this paper analyzed the causes of the monetary policy's regional effects from the subject and carrier aspects. Finally according to the results the paper gives some advices. Such as, building regional monetary policy centre, perfect the regional financial system, strengthen regional policy tool.