The Research On The Asymmetric Effect Of Monetary Policy Of China

The asymmetric effect of monetary policy means that the effect of expansionary monetary policy and the effect of contractionary monetary policy are asymmetric.2008, the finance crisis shake the global economic, after the crisis, the operating of central bank on monetary is becoming increasingly difficult. Therefore, researching the discipline of symmetric effect of monetary policy is helpful for us to understand the monetary policy by central bank and give relative conference for future monetary operation.The main part of this article firstly concludes the quantitative method and research result from domestic and over the world. Most foreign article focus shows that contractionary monetary policy has more strongly effect than expansionary monetary policy. As refer to fact of China, scholars has differences because of different variables and ways to deal with data. This article chose Cover’s classic two stage quantitative model, chose money supply, retail price index and industrial output as the variables to establish an new model. The empirical test results show that the effect of expansionary monetary policy is less strong than the effect of contractionary monetary policy on GDP and CPI. However, the effect on real estate is opposite. And then, we conclude the reason of asymmetric effect from different aspect. Finally, the article we draw the conclusions and raise several policy recommendations based on former results and combined with the existing theories and the latest economic situation in China...