| ℃This paper demonstrates the effectiveness of monetary policy research from the perspective of currency mismatch, which perfectly combined the theoretical analysis and empirical analysis. In the first place, we give the background and research goals, reviews and conclusions of Currency Mismatch. In the Second place, we make the theoretical analysis of currency mismatch's influence on effectiveness of monetary policy. And the study focuses on the transmission channels (such as interest rate, credit, exchange rate etc.) of Currency Mismatch, and its effect. In the third place, we analyze the status quo of currency mismatch and monetary policy, using the indicator of AECM by Goldstein & Turner to assess China's currency mismatch from 1985 to 2009, and analyzing the effects of the implementation of monetary policy in the four stages. In the fourth place, we give the empirical analysis of currency mismatch's influence on the effectiveness of monetary policy, choosing the indicators of monetary supply, interest rate and loans with financial institutions as intermediate target, the indicators of consumer price index and monetary policy's economic growth as the ultimate goal. Then we use the quantitative methods of Cointegration Model, VAR Model and impulse response functions, and variance analysis to study the mechanism of monetary policy, intermediate objectives and ultimate goal. Due to the presence of the currency mismatch in China, the result shows that monetary base is introduced into market and the interest rate are adjusted, inhibiting economic growth promote price to go up, Finally, the author comes up with policy recommendations, such as proposing the transformation of economic development strategy, strengthening management of foreign exchange international completing formation mechanism of foreign exchange, RMB international, weakening our currency mismatch, reducing currency mismatch, weakening the effectiveness of monetary policy. |
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