China's Monetary Policy Effect Of Industry Research

As a total control means, monetary policy has an overall impact to the economy and society. Thought money theory and empirical has a great development, monetary policy tools is still too few compare to the complexity of economy structure. If don’t take into account of the difference of the specific industry structure or the regional structure of the economy during the formulation and the implementation of the monetary policy, it can be lead to a deviation of the effect from the target of the monetary policy. This essay is about to confirm the industry effect of monetary policy in China, and then find the reason of the industry effect of monetary police if it exists. All the effort made here is about to make a complement of monetary structure theory and show a guidance for the monetary policy maker.Considering the importance of monetary policy transmission mechanism, this essay made the theoretical and empirical analysis about monetary policy transmission mechanism firstly, and found in China, with development of the financial market the depth of interest rate market-oriented reform, both credit channel and interest rate channel have been the main channels while interest rate channel is not so important several years ago. Based on the analyses of transmission mechanisms, we then do the research about monetary policy industry effect. The specific methods include VAR model and impulse response function, etc.This essay has four chapters. The first one introduces the background and the meaning of this research, and also makes a simple review of literature. The second chapter is the theory part, which concludes the theory of money conduction theory and then the theory industry effect of monetary policy. The third chapter is the empirical analysis and it has two parts, the first one is about the effectiveness of money conduct ways in China.it finds in China credit channel and the interest rate channel are most important money conduct channels. The second part is the empirical analysis about the existence of monetary industry effects and the reason research, which found, in China, industry labor intensity, industry financial leverage level, average size of companies, liquidity turnover rate are main reasons of the industry effect of monetary policy. The fourth chapter is the conclusion.